Media Rights Technologies, Inc. v. Microsoft Corp., No. 17-16509 (9th Cir. 2019)Annotate this Case
MRT filed suit against Microsoft, alleging patent infringement stemming from MRT's development of a technology to protect electronic files from content piracy. The Ninth Circuit held that claim preclusion barred the claims in this suit that accrued at the time of MRT's patent-infringement action, because these claims arose from the same events—Microsoft's alleged misappropriation of MRT's software—as the prior patent infringement claims. Furthermore, they merely offer different legal theories for why Microsoft's alleged conduct was wrongful. Accordingly, the panel affirmed the dismissal of these claims.
However, the panel held that, under Howard v. City of Coos Bay, 871 F.3d 1032 (9th Cir. 2017), claim preclusion did not bar MRT from asserting copyright infringement claims that accrued after it filed its patent-infringement suit: namely, claims arising from the sale of Microsoft products after MRT filed its patent-infringement suit. Therefore, the panel reversed the district court's dismissal of these copyright infringement claims and remanded for further proceedings.