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Justia Weekly Opinion Summaries

Patents
August 14, 2020

Table of Contents

ATOM Instrument Corp. v. Petroleum Analyzer Co., LP

Business Law, Intellectual Property, Patents

US Court of Appeals for the Fifth Circuit

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Patents Opinions

ATOM Instrument Corp. v. Petroleum Analyzer Co., LP

Court: US Court of Appeals for the Fifth Circuit

Dockets: 19-20151, 19-20371

Opinion Date: August 7, 2020

Judge: Leslie Southwick

Areas of Law: Business Law, Intellectual Property, Patents

After ATOM filed for bankruptcy, plaintiff and ATOM initiated an adversarial proceeding against Petroleum Analyzer, alleging claims of misappropriation of trade secrets, unfair competition, and civil theft. On the bankruptcy court's recommendation, the district court withdrew the reference to the bankruptcy court and asserted jurisdiction under 28 U.S.C. 1334, and entered partial summary judgment for plaintiff and ATOM. Four years later, the district court held a bench trial and entered judgment in favor of Petroleum Analyzer and later awarded attorneys' fees to Petroleum Analyzer. The Fifth Circuit held that the district court did not clearly err by finding that Petroleum Analyzer did not use plaintiff's trade secrets in Petroleum Analyzer's sulfur-detecting excimer lamp called a MultiTek. Furthermore, the district court did not ignore the "law of the case" doctrine. The court also held that the district court did not err by awarding Petroleum Analyzer attorneys' fees under the Texas Theft Liability Act. The court remanded to allow the district court to make the initial determination and award of appellate attorneys' fees to Petroleum Analyzer.

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