In the first article “Don’t Cut Corners With Your Prior Art Statement: Gaither’s Gamble Garners More Grief,” we wrote about Judge Frank granting summary judgment against Gaither Tool on its invalidity claim in Tire Service Equipment Mfg. Co., Inc. v. Gaither Tool Co., in light of the company’s failure to support its allegations through a robust prior art statement. The impact of the summary judgment ruling seems to have been significant.
The parties have now settled the lawsuit and stipulated for entry of a consent judgment and injunction recognizing the validity of Tire Service Equipment’s patent, acknowledging direct and induced infringement by Gaither Tool, permanently enjoining Gaither Tool from selling the infringing products until the patent at issue expires in May of 2019, and dismissing the case with prejudice. Under the terms of the judgment, Gaither’s existing customers were granted a license to use and resell already purchased infringing products. No further details about the confidential settlement agreement have been released.