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WS Packaging Group, Inc. v. Global Commerce Group, LLC
Citation: 327 F. App'x 201Docket: No. 2008-1233
Court: Court of Appeals for the Federal Circuit; September 10, 2008; Federal Appellate Court
Global Commerce Group, LLC's motion to dismiss WS Packaging Group, Inc.'s appeal for lack of jurisdiction is denied. WS Packaging initiated a declaratory judgment action against Global, claiming non-infringement of a patent. Global sought dismissal, citing a prior settlement agreement with a covenant not to sue, leading the district court to dismiss WS's complaint. Following this, Global sold the patent rights to International Gaming Technology, LLC (IGT). Global argues that this sale renders WS's appeal moot due to the absence of a live controversy. Conversely, WS contends that IGT is an alter ego of Global and seeks to substitute IGT in the appeal, asserting that if the appeal is moot, the correct action is to vacate the judgment and remand for further proceedings. The court acknowledges that a case must present a controversy at all stages, including appeals. While the claim that Global and IGT are alter egos is not to be decided at this stage, the sale of the patent raises questions about the existence of a dispute between WS and Global. The court agrees with WS on remanding the case for the district court to determine the implications of the changed circumstances. The court vacates the district court's judgment, allowing it to consider whether to reinstate the dismissal or conduct further proceedings, and makes no determination on WS’s request to substitute IGT or on the necessity of a dismissal judgment. Key orders include: 1) denial of Global’s motion to dismiss the appeal; 2) denial of WS’s substitution motion without prejudice; 3) vacating the district court’s judgment and remanding for further proceedings; and 4) each party bearing its own costs.