Releases Can Waive Future Claims

Hollister Inc. v. Convatec Inc., No. 10 C 6431, Slip Op. (N.D. Ill. June 21, 2011) (Kennelly, J.).

Judge Kennelly granted defendant Convatec's summary judgment because of earlier settlement agreement released plaintiff Hollister's patent infringement claims involving bowel management systems as to then existing products. Here are the key holdings:
 

  • The release provisions in the agreement made clear that the parties intended to release future sales of existing product lines.
     
  • The accrued products did not have new, infringing features that would have brought them outside the bonds of the agreement.
     
  • Hollister cited no case supporting its argument that in New Jersey releases would only be for past and current sales, not future.
     
  • Hollister offered no case law supporting its arguments that a patent application cannot be released before it is issued.

Patent Cross-License Releases Future and Past Claims

Hollister Inc. v. ComvaTec Inc., No. 10 C 6431, Slip Op. (N.D. Ill. Jun. 21, 2011) (Kennelly, J.).

Judge Kennelly granted defendant ConvaTec's motion for summary judgment that its accused bowel management systems were covered by a patent cross-license agreement between ConvaTec and plaintiff Hollister's predecessor Zassi. The agreement released each party for "any and all past, present or future claims" including patent infringement claims involving the parties then existing product lines.

The agreement excerpted new features from the release. But ConvaTec's accused Flexi-Seal products had the same designs as ConvaTec's products at the time of the agreement.

Hollister's argument that only covenants not to sue, not releases, may discharge future claims was not founded in the law. Hollister cited no cases that stood for that point.