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Forum Selection Clauses

By Earl J. LaFontaine

A few years ago, one of our firm's clients was sued for patent infringement ' along with virtually every other company in the same industry. The plaintiff-patentee filed suit in U.S. District Court in Dallas. One of the other defendants, a Wisconsin corporation, was a licensee of our client under a patent and technology license. Since the products accused in the Texas lawsuit were licensed products, the Wisconsin licensee pressed our client for indemnification, and threatened to bring a cross-claim in the Texas lawsuit.

The initial reaction of our client's corporate counsel was: “They can't do that. We have a forum selection clause in our license agreement. If they want to bring a claim, they have to do it in federal court in Michigan.”

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