Facts

In 2018, Covves LLC sued Target Brands, BigMouth, and nine large retailers who sold BigMouth's products alleging patent infringement of its products: the Glitter Wing Unicorn Pool Float, the Unicorn Lil Float, the Unicorn Pride Float, and the Unicorn Bev Boat. A settlement agreement including a general release, was signed in January 2020 by Covves, BigMouth, and Target Brands. Covves received a $400,000 payment from BigMouth pursuant to the agreement and also agreed to pay a 3% royalty on sales made after June 1, 2020. Around May 2020, BigMouth entered a receivership and was unable to make the additional payments. Though plaintiff tried to reopen the case, was denied, moved for reconsideration, again denied, it appealed to the Ninth Circuit which affirmed the denial. Plaintiff then sued Target Corporation and Target Brands based on infringement of the same brand of products.

DEFENDANT'S CONTENTIONS: Defendant argued that: it never agreed to pay plaintiff any sum or guaranty BigMouth's payment; the settlement agreement encompassed any and all claims relating to the accused products even those against the parent companies; plaintiff never rescinded the agreement nor offered to return any payment it had received; plaintiff has not argued that the agreement was valid or unenforceable or that defendant has breached the agreement, and in fact, has acted as if and asserted that the agreement is still valid and in place.

Result

The court granted defendants' motion for summary judgment.