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Judge Tiscione Rules Patent Misuse Is Purged When Infringement Tainted Lawsuit Is Dismissed | Patterson Belknap Webb & Tyler LLP


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On February 16, 2021, U.S. Magistrate Judge Steven L. Tiscione (E.D.N.Y.) recommended granting plaintiff Nationwide Sales and Services Inc.’s (“Nationwide”) motion for judgment on the pleadings as to patent misuse counterclaims asserted by defendant Steel City Vacuum Co. (“Steel City”).
Nationwide sells vacuum cleaners and parts in the United States.  Its products are sourced from a Chinese manufacturer that allegedly used Nationwide’s trade secrets and proprietary designs to produce Nationwide products.  Steel City is a vacuum cleaner and parts distributor, and purchased vacuum products from Nationwide as well as from various Chinese manufacturers, including the manufacturer that supplied Nationwide with its products.  Nationwide sued Steel City in November 2016 for, among other things, infringement of two U.S. patents alleging that Steel City imported directly from Nationwide’s Chinese manufact ....

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