(CN) – The Federal Circuit affirmed dismissal of a lawsuit accusing Star Seismic of violating a license agreement by hiring subcontractors to make patented braces for earthquake-resistant, steel-framed buildings.
When patent owner CoreBrace learned that Star was using third parties to make the licensed braces, it terminated the licensing agreement and sued Star for breach of license.
A federal judge in Utah dismissed the case, saying the agreement never barred the licensee from routing the manufacturing through third parties. Star had acted within its rights, U.S. District Judge Dale Kimball ruled.
The federal appeals court in Washington, D.C., affirmed.
“We conclude that … the district court correctly determined that Star was entitled to have contractors make the licensed product and did not breach the patent license in doing so,” Judge Lourie wrote.