Facts

Plaintiff Mediatechnics Systems Inc. (MS) and defendants Wordtech Systems Inc. (WS) and Copypro Inc, (CI) had reached a settlement regarding a patent infringement case, which MS later sought to rescind.

MS filed suit for patent infringement, declaratory judgment of non-infringement, patent invalidity, interference with prospective economic advantage, rescission, unjust enrichment, and misrepresentation. WS, CI, and fellow defendant David Miller filed a countersuit for breach of confidential relationship, breach of contract, misappropriation of trade secrets, infringement of patent, and unfair business practices.

PLAINTIFF'S CONTENTIONS:
MS contended that there were misrepresentations during the settlement negotiation process, which caused the defendants to fraudulently procure a settlement agreement in their favor.

DEFENDANTS' CONTENTIONS:
Defendants contended that MS was fully informed of all conditions within the settlement agreement and everything that led to the agreement was proper.

Damages

MS sought damages in the amount of $107,000.

Result

MS agreed to a settlement whereby they would pay defendants $589,600 in damages and would acknowledge the validity of the patents that were the subject of this litigation.