Licensee Can Sue For Infringement Without Patent Owner

The Federal Circuit held that a Disney licensee can sue for infringement of the licensed patent – a flame technology for artificial candles – even though it is not the exclusive licensee. The licensee approached a Chinese company about manufacturing the candles. When negotiations broke down the Chinese company began selling the candles in the U.S., and the licensee sued. The court held that the suit can go forward, but remanded to the district court a decision as to whether a tortuous interference claim would independently justify a preliminary injunction.