Allen Archery Inc. v. Browning Manufacturing Co.

Allen Archery, Inc. (Allen) (plaintiff) sued Browning and Browning Manufacturing Co. (defendants) in federal court for infringement of the 495 patent, arguing that Browning Manufacturing violated a licensing agreement for the patent. During the ongoing proceedings, Browning and Browning Manufacturing requested a stay for the resolution of another pending case whose outcome could eliminate the need for trial or reduce the trial’s scope. Allen first opposed the stay but joined the stay request at the suggestion of the Judicial Panel on Multidistrict Litigation. Six claims were invalidated in the other pending case. After the stay was lifted, the district court found infringement of the 495 patent and held that (1) the patent-licensing agreement between Allen and Browning Manufacturing was enforceable, (2) Browning Manufacturing breached the agreement, and (3) Allen was entitled to recover royalties pursuant to the licensing agreement. The district court ruled that Allen could receive prejudgment interest except for the three-year period of the stay. Allen was awarded damages of over $1.6 million and over $950,000 in prejudgment interest. Both parties appealed. Browning and Browning Manufacturing argued that because Allen’s only business was patent licensing, Allen did not miss out on any uses for the money that Browning and Browning Manufacturing would have paid in royalties if the license had been honored, and that therefore prejudgment interest was improper.