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Settlement Agreement Estoppel

Contrary to PersonalWeb`s assertions, the rule we apply here does not affect the parties` ability to resolve patent disputes. To the extent that a plaintiff wishes to settle an infringement action while preserving its rights to sue the same or other parties in the future, it may do so by limiting the termination agreement in order to preserve the rights that the defendant wishes to accept. The parties to the establishment are free to limit the exclusionary effect of a termination; they simply need to design their agreement in such a way as to highlight any restrictions they wish to accept with respect to the downstream effects of termination. . . .

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