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Aptix Corporation v. Quickturn Design Systems, Inc.

United States Court of Appeals for the Federal Circuit
148 Fed. Appx. 924 (2005)


Facts

Dr. Mohsen created Aptix Corporation (Aptix) (defendant). Mohsen, who was chief executive officer, chairman, and majority shareholder of the company, had made $2 million in unsecured loans to Aptix. Quickturn Design Systems, Inc. (Quickturn) (plaintiff) sued Aptix for patent infringement. Before the judgment of $4.2 million was entered for Quickturn, Mohsen made a secured loan of $9.7 million. Aptix claimed that it was unable to get loans from anyone else, and Mohsen argued that the loans were necessary for Aptix to continue operation. The district court concluded that the security interest granted to Mohsen was a fraudulent transfer under California law. Cal. Civ. Code § 3439.04(a). Mohsen appealed to the United States Court of Appeals for the Federal Circuit.

Rule of Law

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Issue

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Holding and Reasoning (Gajarsa, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
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Dissent (Newman, J.)

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