USA: Frisby And Outlast Reach Legal Compromise
On April 25, Frisby filed a demand for arbitration against Outlast based upon certain disputes arising under the January 1, 1998 License Agreement between them.
On May 31, Outlast initiated a lawsuit in District Court for patent infringement against Frisby.
On July 10, 2000, Frisby filed a motion in District Court to dismiss the lawsuit, or alternatively, to stay the suit pending the conclusion of the arbitration proceeding.
Under the terms of the agreement announced today, Outlast agrees to join in Frisby's motion to stay and request that the District Court stay the patent infringement action pending the outcome of the arbitration proceeding.
In the event the District Court refuses to stay the patent infringement action, Outlast agrees to dismiss that action without prejudice and not to initiate any other lawsuit based upon the claims asserted in that proceeding until after the arbitration proceeding is concluded.
Further, subject to certain provisions, Outlast has agreed that it will not, during the pendency of the arbitration proceeding, attempt to prevent Frisby or its customers, licensees, or sublicensees from manufacturing or selling existing licensed products or entering into agreements to manufacture or sell additional licensed products. Frisby will continue to pay to Outlast all appropriate payments as set forth in the license agreement during the pendency of the arbitration proceeding.
Outlast is one of several licensors to the company. The company's license from Outlast provides Frisby with certain exclusive rights related to the use of foams attached to fibers or fabric. Foams not attached to fabric, as well as the new lines of leather and gel products using ComforTemp(R) DCC(TM) materials are not involved in this current dispute.
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