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Written January 10, 2019
The Court of Chancery of the State of Delaware on January 2, 2019, ruled that FetchIT, a customer management software company, breached its license agreement with Shodogg when it alluded to a sublicense offer in an email to Shodogg’s competitor. Fetch Interactive Television LLC v. Touchstream Techs. Inc., Del. Ch., C.A. No. 2017-0637-SG, 1/2/19.
Shodogg, which develops software that allows streaming of content from one electronic device to another, was sued by FetchIT after Shodogg canceled their license agreement. Shodogg canceled the agreement after it learned that FetchIT had reached out to Vizbee Inc, one of Shodogg’s competitors, for sublicensing discussions and ultimately withheld FetchIT’s access to their technology.
FetchIT argued that an addendum granted it the right to sublicense Shodogg’s IP to any non-infringing party. However, the court found that FetchIT was aware that Shodogg considered Vizbee to be infringing its technology, and therefore Shodogg was entitled to terminate the license agreement between the two companies.
Shodogg, which develops software that allows streaming of content from one electronic device to another, was sued by FetchIT after Shodogg canceled their license agreement. Shodogg canceled the agreement after it learned that FetchIT had reached out to Vizbee Inc, one of Shodogg’s competitors, for sublicensing discussions and ultimately withheld FetchIT’s access to their technology.
FetchIT argued that an addendum granted it the right to sublicense Shodogg’s IP to any non-infringing party. However, the court found that FetchIT was aware that Shodogg considered Vizbee to be infringing its technology, and therefore Shodogg was entitled to terminate the license agreement between the two companies.
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