Delaware Court Clears Path for Finjan to Establish Additional Royalties Owed by Trustwave
GlobeNewswire•February 19, 2019
Trustwave’s Motion to Dismiss Breach of Contract Case Initiated by Finjan is Denied
EAST PALO ALTO, Calif., Feb. 19, 2019 (GLOBE NEWSWIRE) -- Finjan Holdings, Inc. (FNJN), and its subsidiary Finjan, Inc. ("Finjan"), filed a complaint against its licensee, Trustwave Holdings, Inc. (“Trustwave”) in the Superior Court of the State of Delaware for Breach of Contract (Case No. N18C-04-006) on April 4, 2018. Finjan entered into an Amended and Restated Patent License Agreement (“Agreement”) with Trustwave on March 6, 2012. On February 11, 2019, after considering Trustwave’s Motion to Dismiss Plaintiff’s Complaint, the Honorable William C. Carpenter, Jr. of the Superior Court of the State of Delaware denied the motion, ruling that Finjan’s breach of contract suit may proceed.
As with the majority of Finjan’s Agreements and Licenses, certain provisions are included which essentially serve as pricing protections. Under this particular Agreement, in the event that Trustwave was acquired, certain royalties would be due on certain products. Finjan alleges that Trustwave breached the parties’ Agreement by failing to pay royalties believed owed as a result of Trustwave’s acquisition by Singapore Telecommunications Ltd. (“Singtel”) on or about September 2015.
“We have long enjoyed our relationship with Trustwave and place great value on the fact that they are a licensee of Finjan, Inc.’s patents. While we wish to maintain this relationship, it became apparent after extensive negotiations that it was necessary to file suit to enforce the terms of our Patent License Agreement that contemplated additional royalty payments upon certain qualified acquisition events, such as Singtel acquiring Trustwave,” said Julie Mar-Spinola, CIPO of Finjan. “Such provisions are common in our Patent License Agreements not only to help protect the value of Finjan’s patent portfolio but also serve to protect the value to our stakeholders.”
