Ask Chemicals, Lp v. Computer Packages, Inc.

593 Fed.Appx. 506 (6th Cir. 2014)

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Nature of the Case

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Facts

Ashland, a chemical applied for a Japanese patent to protect the method by which it produced a particular type of riser sleeve that was unique in its employment of a 'cold-box' manufacturing process. Riser sleeves, essentially metal reservoirs external to the casting, prevent this potential defect by providing additional liquid metal during cooling so that voids form in the riser, not in the casting itself. The '168 patent issued and was assigned by Ashland to P on November 30, 2010. P is covered by a number of European and American patents. At the time the '168 patent lapsed, P had no sales of related technology in Japan. Ashland, while still the holder of the '168 patent, had hired D to pay the annual fees due on its patents in Japan. After the assignment, D continued in its role maintaining the patent. D breached a contract when it failed to pay the amounts required under Japanese law. P filed a complaint against D for compensatory, direct, expectancy, and prospective damages under two counts: breach of contract and breach of implied-in-fact contract. D admitted that it had failed to pay the required fees and that, as a result of its failure, the patent lapsed. D moved for summary judgment. The district court granted d's motion for summary judgment. It held that there were no further issues of material fact for a jury, and P had failed to demonstrate with reasonable certainty the amount of lost profits resulting from the breach of contract. P appealed.