Parent Company not Liable for Subsidiary's Patent Infringement
The Eastern District of Missouri granted summary judgment to the parent company for the subsidiary's alleged patent infringement in Iridex Corp. v. Synergetics USA, Inc., 2007 WL 326441 (E.D. Mo. 1/31/07).
Iridex holds a patent for a fiber optic connector system used in medical lasers. Iridex claimed Synergetics infringed its patent by selling Synergetics' connector system. The court held issues of fact were present on these claims and denied summary judgment.
Iridex also sued Synergetics USA, the parent company of Synergetics. In granting summary judgment for Synergetics USA, the court held there was no evidence of inducement of infringement. See 35 U.S.C. § 271(b). The court also held the companies were treated separately so as to preclude piercing the corporate veil.