Raffel Systems, LLC v. Man Wah Holdings Ltd, Inc.

2020 WL 3211684 (2020)

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Raffel Systems, LLC v. Man Wah Holdings Ltd, Inc.

United States District Court for the Eastern District of Wisconsin
2020 WL 3211684 (2020)

RW

Facts

Raffel Systems, LLC (Raffel) (plaintiff) sued Man Wah Holdings Ltd, Inc. (Man Wah) (defendant) for infringing patents that Raffel used as collateral for obtaining bank loans. Raffel asserted standing as the assignee of the original patent holder, with full rights of ownership in the patents. Man Wah countered that Raffel gave up its status as assignee and became a mere licensee, with no standing to sue in Raffel’s own name, when Raffel created security interests in the patents, which the bank perfected by recording those interests with the United States Patent and Trademark Office (USPTO). Man Wah’s motion to dismiss the case for lack of standing relied heavily on the United States Supreme Court’s decision in Waterman v. Mackenzie. Raffel found support in § 261 of the Patent Act (35 U.S.C. § 261) and Wisconsin’s version of the Uniform Commercial Code (UCC), Article 9.

Rule of Law

Issue

Holding and Reasoning (Joseph, J.)

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