A “Side Bet” Option Does Not Create A Live Case Or Controversy On Appeal

Abstract

In In re Hybir, Inc., No. 2025-1367, 2026 WL 1076702 (Fed. Cir. Apr. 21, 2026), the Federal Circuit dismissed a patent owner’s appeal where a settlement agreement tied the outcome of the appeal to a nominal, $100 optional license. The Federal Circuit decided that because the prospective $100 option was merely a “side bet” on the outcome of the appeal that did not create a live case or controversy.

Background

The dispute arose when Hybir, the owner of a patent for a computer-file backup system, sued Veeam, a software corporation, for patent infringement. The district court dismissed the case, finding Hybir’s patent claims ineligible. Following the dismissal, the parties entered into a broader settlement agreement, which did not include the patent at issue ruled ineligible in the district court. Under the agreement, Hybir reserved the right to appeal the district court’s judgment regarding that patent, and Veeam maintained the option to license its patent for $100 if