A Blog About Intellectual Property Litigation and the District of Delaware


Entries for tag: Settlement

People think they just have to run out that clock...
Akram Huseyn, Unsplash

It's not uncommon for parties to find themselves in a position where, while discussing settlement, they end up filing a series of short (or not so short) extensions over a potentially lengthy period in order to give themselves time to negotiate.

Why not just stipulate to a full-on stay? The problem with a complete stay is that it removes all pressure to actually get the settlement done. I've seen cases where one side wanted to push the settlement forward, but would have had to essentially move to lift a stay to apply any kind of pressure. That's not where you want to be.

Sometimes, implementing the process as a series of stipulated extensions of a deadline, such as an answer deadline, can help maintain some pressure for each side to continue to negotiate while not actually requiring the parties to litigate. There is always the implicit threat that, if the parties can't agree on a further extension, the case will start right back up again.

As we've noted before, though, eventually the Court may want an update. The exact number of repeated extensions that a particular judge will tolerate likely depends on the circumstances, but it's not infinite.

We got another data point on this last week after the parties in a patent action before Judge Bryson filed 7 stipulations to stay an answer deadline. The Court granted the newest stip, but asked in the accompanying oral order for a status update within 4 days:

ORDER: This stipulation to extend time (D.I. 249 ) is granted. However, this is the seventh stipulation to extend time for defendants to file their answers and counterclaims with nearly identical language. Accordingly, parties are directed to file a joint status report with the court no later than December 12, 2025, at 5 p.m. Eastern Time setting forth what progress has been made toward settlement of this matter, what remains to be done, and when the parties expect this matter to be resolved. Signed by Judge William C. Bryson on 12/08/2025. (mpb) (Entered: 12/08/2025)

Colt International Clothing, Inc. v. Quasar Science LLC, C.A. No. 22-213-WCB, D.I. 250 (D. Del.).

On the fourth day, the parties filed a notice of settlement and promised to dismiss the case.

Broken
CHUTTERSNAP, Unsplash

Settlement agreements often start to come apart at the seams during negotiations, so it helps for attorneys who handle such negotiations to know when the agreement will be binding and when it will not.

Yesterday, the Court issued an opinion in Astellas Pharma Inc. v. MSN Pharma. Inc., C.A. No. 23-689-JFB-CJB (D. Del.) discussing what happens when parties reach a settlement agreement but it falls apart before they actually sign.

It started with the basic proposition that, in the abstract, a signed, written agreement is unnecessary:

a signed and executed agreement is not a prerequisite for contract formation unless the . . . “parties positively agree that there will be no binding …

Last month we wrote about Judge Andrews' order that a plaintiff who won a default judgment against Aston Martin, LLC must file any settlement agreements from seven other patent suits, in order to help the Court determine the proper damages award.

Plaintiff has now responded.

We wondered in our last post whether the Court would permit plaintiff to file under seal. The answer is yes: the Court found the following short paragraph from the briefing to be sufficient to permit filing the settlement agreements and settlement amounts under seal:

Good cause exists to seal these Settlement and License Agreements. The Agreements contain confidentiality clauses such that if the documents were not filed under seal, Plaintiff might be in breach …

Checkered Flag
Bas van den Eijkhof, Unsplash

Default judgments are uncommon in Delaware patent cases. In the rare instance where a defendant misses an answer deadline, the issue is typically resolved with minimal court intervention, either because the plaintiff agrees to an extension or the court sets aside the entry of default.

But in a recent case against Aston Martin, LLC (brought by Display Technologies, LLC), it appears that a default judgment might actually be moving forward. (Side note: it isn't clear to us whether the correct legal entity was sued or served, and we take no position on that front.)

The complaint was filed in February 2020, the summons was served in May, and the clerk entered a default in July. The plaintiff eventually moved for a default judgment in December, seeking an award of $75,000 to $1 million (based on damages estimates from a client affidavit).

On Monday, Judge Andrews recognized that it would "be necessary to have a hearing in order to determine the amount of damages[,]" but made clear that he wasn't going to take the plaintiff's word for the damages number ...

Well this is interesting. It's an article by a non-attorney about the GNOME foundation's fight against a suit by a Rothschild NPE. The article links to the settlement agreement and characterizes it as including a covenant not to sue from all Rothschild entities against anyone based on the use of software licensed under all of the biggest open-source licenses.

Last year, a Rothschild entity sued the GNOME foundation for infringement by its product GNOME, which is a well-known open-source component of many GNU/Linux- and Unix-based operating systems.

The parties settled in May 2020, and the press releases and news reports at the time suggested that the settlement protected other open source software from future Rothschild suits.

Now that we …