Raytheon Co. v. Indigo Systems Corp.

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Raytheon produces infrared imaging equipment, including infrared cameras, which enable people to see in the dark and through obstructions such as smoke. Indigo’s founders included three former Raytheon employees. By 2000, Indigo was manufacturing and selling infrared cameras. In 2007, Raytheon sued, alleging patent infringement and trade secret misappropriation under California and Texas law. The district court granted Indigo summary judgment, finding Raytheon’s trade secrets claims time-barred. The parties settled Raytheon’s patent claims. The Federal Circuit reversed, reasoning that there were factual questions regarding when Raytheon should have become aware of its misappropriation cause of action and vacated the denial of Indigo’s motion for attorney fees under the under the Texas Theft Liability Act (TTLA). On remand, a jury ruled in Indigo’s favor on all 31 alleged trade secrets. Raytheon unsuccessfully moved for judgment as a matter of law, contending that it had conclusively established misappropriation of two trade secrets. Indigo moved for attorney fees under the TTLA arguing Raytheon had withdrawn its TTLA claim to avoid an adverse ruling that California law, rather than Texas law, governed Raytheon’s misappropriation claims. Denying Indigo’s motion, the district court observed that Raytheon’s continued pursuit of its misappropriation claims under California law established that Raytheon’s withdrawal of its TTLA claim was not motivated by a desire to avoid an unfavorable ruling. The Federal Circuit affirmed both the judgment of no liability in favor of Indigo and the denial of attorney fees. View "Raytheon Co. v. Indigo Systems Corp." on Justia Law