Zippysack LLC v. Ontel Products Corporation

182 F.Supp. 3d 867 (2016)

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Nature of the Case

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Facts

P alleged that D infringed its patents covering a specialty bed sheet. The sheet, marketed for children, is designed to be zipped up rather than folded and tucked, obviating the everyday drudgery of making the bed. P's product is named 'ZippySack,' while D's allegedly infringing product is known as 'ZipIt Friends.' The parties settled the 2015 matter and stipulated to a dismissal with prejudice. P filed the present suit claiming that D breached the settlement agreement. D agreed to cease producing ZipIt Friends, and P relinquished all legal claims. P agreed that it would sell no more than its existing inventory of ZipIt Friends, which was believed numbered at 80,000. D had to report monthly on the status of its effort to sell off the remaining inventory. Shortly after the settlement, D reported that it has 119,432 ZipIt Friends units remaining in inventory. P responded by stating that it had not agreed to allow more than 80,000 ZipIt Friends products to be sold by D after the settlement date. P then asked D to confirm that any surplus products above 80,000 units as of the time of the settlement will be destroyed or sold outside the United States or Canada. P filed the present lawsuit.