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Tuskos Engineering v. Tuskos

Kentucky Court of Appeals
676 S.W.2d 794 (1984)

Written by Tammy Boggs, JD

Facts

Michael Tuskos (Michael) (plaintiff) was a listed inventor and owner of three patents that related to a specified machine. In 1972, Michael licensed the patents to Tuskos Engineering (Tuskos) (defendant), and in exchange Tuskos agreed to pay Michael royalties at the rate of 10 percent of the selling price of each machine sold. Years later, Tuskos ceased its royalty payments, and Michael sued Tuskos for breach of the licensing agreement, claiming that royalty payments were owed. Tuskos counterclaimed that Michael had obtained the patents through fraud and that the patents were invalid. Tuskos sought to recoup all payments that had been made to Michael, totaling over $31,000. Following an evidentiary hearing, the trial court found that Michael had made erroneous statements regarding prior uses and publications of the inventions in obtaining the patents but that he had neither committed intentional fraud nor knowingly concealed information. The trial court refused to declare the patents invalid and decided that Michael was entitled to outstanding royalties. Tuskos appealed.

Rule of Law

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Issue

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Holding and Reasoning (Paxton, J.)

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