Natec, Inc. v. Deter Co.

                   United States Court of Appeals,

                           Fifth Circuit.

                            No. 93-2882.

  NATEC, INC. and Natec Resources, Inc., Plaintiffs-Appellants,

                                 v.

               DETER COMPANY, et al., Defendants.

               DETER COMPANY, Defendant-Appellee,

                                 v.

                   BENETECH, Defendant-Appellant.

                            Aug. 8, 1994.

Appeal from the United States District Court for the Southern
District of Texas.

Before KING, JOLLY, and DAVIS, Circuit Judges.

     PER CURIAM:

                                 I.

     Appellants, Natec, Inc., Natec Resources, Inc., and Benetech,

hold licenses to operate a patent owned by appellee, Deter Company.

The license agreements were entered into following settlement of

separate patent infringement lawsuits in courts other than the

Southern District of Texas, where this suit was filed. The instant

suit sought various types of relief, including a declaration that

the license agreements were unenforceable.    This particular claim

for relief alleged that the patent, which is the subject of the

license agreements, expired before the termination date of the

license agreement, and that Deter could not enforce the license

agreement after expiration of the patent.    Deter filed motions for

summary judgment urging the district court to give res judicata

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effect to the earlier consent judgments and settlements.       The

district court essentially agreed with appellee's plea of res

judicata and dismissed plaintiffs' suit.

                                II.

       We are persuaded that we lack jurisdiction to consider this

appeal.      Under 28 U.S.C. § 1295(a), the Federal Circuit has

exclusive jurisdiction of an appeal where the district court's

jurisdiction was based, in whole or in part, on 28 U.S.C. § 1338.

Section 1338(a) provides: "The district courts shall have original

jurisdiction of any civil action arising under any Act of Congress

relating to patents...."

       The district court's jurisdiction in this case was based in

part on § 1338.   The right of the patent holder, Deter, to enforce

the settlement agreements and obtain royalties for use of the

patent after it expires is a substantial question of federal patent

law.    See Brulotte v. Thys Co., 379 U.S. 29, 85 S.Ct. 176, 13

L.Ed.2d 99 (1964);     Hemstreet v. Spiegel, Inc., 851 F.2d 348

(Fed.Cir.1988).    Because the plaintiffs' right to relief depends

upon resolution of a substantial question of federal patent law,

exclusive jurisdiction over this appeal is vested in the Federal

Circuit. See Christianson v. Colt Indus. Operating Corp., 486 U.S.

800, 809, 108 S.Ct. 2166, 2174, 100 L.Ed.2d 811 (1988);       Wang

Laboratories v. Applied Computer Sciences, 926 F.2d 92, 94 (1st

Cir.1991).

       We therefore transfer this appeal to the Federal Circuit

pursuant to 28 U.S.C. § 1631.   The clerk of this court is directed


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to transmit the record, briefs, and other documents relating to

this appeal to the clerk of the Federal Circuit.

     APPEAL TRANSFERRED.




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