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Everex Systems v. Cadtrak Corp.

89 F.3d 673 (1996)

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Everex Systems v. Cadtrak Corp.

United States Court of Appeals for the Ninth Circuit
89 F.3d 673 (1996)

Facts

Cadtrak Corporation (defendant) granted CFLC, Inc. a royalty-free, worldwide, nonexclusive license to use certain computer-graphics technology for which Cadtrak owned a patent (Cadtrak license). CFLC later filed a petition for relief under Chapter 11 of the United States Bankruptcy Code and sold certain assets to Everex Systems, Inc. (Everex) (plaintiff). As agreed by CFLC and Everex, CFLC moved to assume the Cadtrak license and assign it to Everex. Cadtrak objected. The bankruptcy court denied CFLC’s motion, and the district court affirmed. CFLC and Everex appealed.

Rule of Law

Issue

Holding and Reasoning (Pregerson, J.)

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