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ARTICLE · 12 MARCH 2013

Federal Circuit Rules Assignor Estoppel Is A Shield, Not A Sword

The U.S. Court of Appeals for the Federal Circuit affirmed that the doctrine of assignor estoppel does not provide a basis for federal jurisdiction.

United StatesIntellectual Property

The U.S. Court of Appeals for the Federal Circuit affirmed that the doctrine of assignor estoppel does not provide a basis for federal jurisdiction. Semiconductor Energy Labs Co. v. Nagata, Case No. 12-1245 (Fed. Cir., Feb. 11, 2013) (Lourie, J.).

In an earlier suit by Semiconductor Energy Labs (SEL) against Samsung for patent infringement, one of the patent's co-inventors, Nagata, testified for Samsung that the signatures on the declarations and assignments in the patent prosecution file were not his. This raised issues of inequitable conduct and brought the enforceability of the patent into question. SEL claims that this resulted in a less advantageous settlement for SEL. SEL then sued Nagata in district court, claiming that Nagata's repudiation of the signature was a violation of his duty under the doctrine of assignor estoppel, which prevents an assignor from challenging the validity of a patent they have assigned.

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