Asia Vital Components Co. v. Asetek Danmark A/S, No. 15-1597 (Fed. Cir. 2016)
Annotate this CaseAVC manufactures cooling systems for integrated circuits. Asetek’s patents are directed toward liquid computer cooling systems to cool integrated circuits. Asetek brought infringement lawsuits against other competitors and sent a letter accusing AVC of infringement, based on Asetek’s mistaken belief that AVC manufactured Liqmax 120s. AVC responded that it did not manufacture Liqmax 120s, but requested a meeting. Asetek responded that if AVC was not making Liqmax 120s there was no reason to meet; that it had unsuccessfully tried to cooperate with AVC previously; and that it does not license its patents. The letter stated, “Please be advised that Asetek believes that AVC is likely selling other infringing products” and that Asetek enforces its IP. A meeting ultimately occurred ; Asetek offered AVC a license at a royalty rate of 16%. AVC then filed suit alleging that AVC had designed and built certain liquid cooling products and seeking a declaration that its products did not infringe the Asetek patents and that those patents are invalid. Accepting Asetek’s assertion that it did not know that those products existed before AVC’s complaint, the district court dismissed for lack of subject matter jurisdiction. The Federal Circuit reversed. AVC alleged sufficient facts that, “under all the circumstances, show that there is a substantial controversy, between parties having adverse legal interests, of sufficient immediacy and reality to warrant the issuance of a declaratory judgment.”
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