Memorylink Corp. v. Motorola Solutions, Inc.
773 F.3d 1266
Fed. Cir.2014Background
- Memorylink and Motorola collaborated to develop a handheld wireless video system; Memorylink formed to fund the venture.
- In 1998, inventors Strandwitz, Kniskern, Schulz, and Wyckoff executed an Assignment transferring rights to Motorola and Memorylink.
- The ’352 patent lists Strandwitz, Kniskern, Schulz, and Wyckoff as inventors and issued in 2003.
- Memorylink later alleged misinventorship and sought to void the Assignment; Motorola moved for summary judgment on consideration and patent ownership.
- The district court held there was consideration and that Motorola could not infringe as a joint owner; tort claims were dismissed as time-barred.
- On appeal, the Seventh Circuit affirmed, upholding the contract-based grant of summary judgment and the dismissal of untimely tort claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was there valid consideration for the Assignment? | Memorylink contends consideration was lacking since Motorola employees’ interests could not be assigned. | Motorola asserts explicit consideration in the four-corners document and additional consideration (prosecution, support, opportunities). | No genuine dispute; there was valid consideration. |
| Did the Assignment make Motorola a joint owner precluding infringement liability? | Assignment failed to transfer ownership or provide valid consideration to Memorylink. | Assignment unambiguously conveyed rights and included consideration, making Motorola a joint owner. | Motorola was a joint owner; no infringement liability. |
| Did Memorylink's tort claims accrue and were they timely filed? | Discovery rule tolls accrual for fraudulent claims due to attorney misrepresentations. | Accrual occurred when facts were known or should have been known; discovery rule does not toll. | Tort claims accrued long before suit and were time-barred. |
| Were the patent infringement and related claims properly decided on summary judgment? | Disputed inventorship and ownership raise triable issues. | There was a valid Assignment and no genuine factual dispute on ownership. | Summary judgment for Motorola on noninfringement affirmed. |
Key Cases Cited
- Urban Sites of Chicago, LLC v. Crown Castle USA, 979 N.E.2d 480 (Ill. App. Ct. 2012) (four-corners contract interpretation rule)
- Melena v. Anheuser-Busch, Inc., 847 N.E.2d 99 (Ill. 2006) (consideration sufficiency; not evaluating adequacy)
- Carter v. SSC Odin Operating Co., 976 N.E.2d 344 (Ill. 2012) (inquiry into consideration not based on adequacy)
- Gavery v. McMahon & Elliott, 670 N.E.2d 822 (Ill. App. Ct. 1996) (court not examining adequacy of consideration absent gross inadequacy)
- Horbach v. Kaczmarek, 288 F.3d 969 (7th Cir. 2002) (discovery rule for fraud claims; accrual timing)
- Weger v. Shell Oil Co., 966 F.2d 216 (7th Cir. 1992) (attorney fault not tolling accrual)
- Witherell v. Weimer, 421 N.E.2d 869 (Ill. 1981) (accrual about knowledge of claim; misstatement not tolling)
- United States v. Kubrick, 444 U.S. 111 (1979) (standard for accrual and discovery in fraud)
- Perry v. Sullivan, 207 F.3d 379 (7th Cir. 2000) (statute of limitations accrual; tolling standards)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986) (summary judgment standard; burdens of proof)
- Killingsworth v. HSBC Bank Nevada, N.A., 507 F.3d 614 (7th Cir. 2007) (statute of limitations and accrual considerations)
- Lexion Med., LLC v. Northgate Techs., Inc., 641 F.3d 1352 (Fed. Cir. 2011) (reviewing summary judgment under Seventh Circuit law)
