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ARTICLE · 11 DECEMBER 2013

Futurewei Techs., Inc. v. Acacia Research Corp.

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"When two actions that sufficiently overlap are filed in different federal district courts, one for infringement and the other for declaratory relief, the declaratory judgment action, if filed later, generally is to be stayed, dismissed, or transferred to the forum of the infringement action."

United StatesIntellectual Property

"When two actions that sufficiently overlap are filed in different federal district courts, one for infringement and the other for declaratory relief, the declaratory judgment action, if filed later, generally is to be stayed, dismissed, or transferred to the forum of the infringement action."

On December 3, 2013, in Futurewei Techs., Inc. v. Acacia Research Corp., the Federal Circuit (Reyna, Mayer, Taranto*) affirmed the district court's dismissal of Huawei's complaint seeking a declaratory judgment of noninfringement and invalidity of five patents, which related to mobile handsets and tablets. The Federal Circuit stated:

This "first-to-file" rule exists to "avoid conflicting decisions and promote judicial efficiency." But the rule is not absolute; exceptions may be made if justified by "considerations of judicial and litigant economy, and the just and effective disposition of disputes." Justification for an exception may be found in "the convenience and

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