State Law Cannot Blur The Line Between Patents And Copyrights

The US Court of Appeals for the Fifth Circuit determined that a plaintiff could not use a state law claim for unfair competition to protect a valve design, because federal copyright law preempts such a claim. Ultraflo Corp. v. Pelican Tank Parts, Inc., Case No. 15-20084 (5th Cir., Jan. 11, 2017) (Costa, J.).

An Ultraflo employee designed a new butterfly valve for use in the transportation industry and recorded that new valve design in drawings. Pelican, an Ultraflo competitor, later hired the employee. Pelican also began selling a similar butterfly valve. Ultraflo believed that Pelican hired the former Ultraflo employee to access Ultraflo's valve design, so Ultraflo filed a claim for state unfair competition by misappropriation.