Facts

Composite Resources Inc. owns three related patents: 7,842,067; 7,892,253; and 8,888,807 regarding a novel tourniquet, a medical device for restricting blood flow. Derek R. Parsons was the chief operating officer of Recon Medical, LLC, a medical supplies company. In January 2017, Composite sued Recon in the District of Nevada, alleging Recon's Gen 1, 2, 3, and 4 tourniquets infringed its patents. On September 3, 2021, the same day the court set a date for the case, Recon filed for Chapter 11 Bankruptcy. The jury found that all of Recon's tourniquets infringed Composite's patents, and the court issue an injunction order on January 6, 2022. The order permanently enjoined Recon and anyone affiliated with Recon from selling, importing, or monetizing the infringing tourniquets. On December 17, 2022, before the court ordered its injunction, Composite filed a lawsuit against Parsons, alleging infringement, inducement of infringement, and civil conspiracy.

PLAINTIFF'S CONTENTIONS: Plaintiff alleged that defendant was liable for Recon's patent infringement violations because he controlled Recon and had ultimate authority over all of Recon's business activities. Further, plaintiff contended that their claims were not precluded by issue preclusion because Parsons was not a party to the Nevada lawsuit, the continuing selling of the infringing tourniquets after Composite filed its lawsuit fit into a temporal exception to claim preclusion, and there was a limitation on claim preclusion when jurisdictional or statutory barriers prevented plaintiff from recovering damages in the initial action.

DEFENDANT'S CONTENTIONS: Defendant denied all contentions

Result

Parsons' motion to dismiss was granted without leave to amend.