- 17 - brought an action in Federal District Court seeking a declaratory judgment as to the validity of Cascade's patents. In 1989, Cascade filed a counterclaim against the Taiwanese manufacturer and its U.S. distributor, and a complaint with the International Trade Commission, claiming that the Taiwanese version of the mattress infringed upon Cascade's patents. In 1990, Cascade and Lea agreed to suspend the corporation's obligation to make payments to Lea pending the resolution of the litigation with the Taiwanese manufacturer. In 1991, at the request of Cascade, the litigation was dismissed. As a result of the dismissal, the Taiwanese manufacturer was allowed to continue manufacturing the mattresses and to sell them in the United States, and Cascade's patents retained their presumption of validity. In 1992, Cascade paid Lea the amounts that had been suspended pending the outcome of the litigation. The 1982 agreement was amended on three occasions to reduce the amount payable to Lea. Recognizing that the litigation with the Taiwanese manufacturer had weakened, but not invalidated, the patents, Cascade and Lea agreed in November 1992 to reduce the payments from 5 to 4 percent of the gross selling price of the products using the technology covered by those patents. In January 1993, upon reassessment of the value of the patents after the settlement of the lawsuit, Cascade and Lea agreed to reduce the payments from 4 to 2.5 percent of the gross selling price ofPage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
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