Holding Company Not Liable For Subsidiary’s Conduct

Posted on | March 20, 2008 | No Comments

2008-1202 TIP Systems v. SBC Operations
SD/TX 06-CV-0253

Plaintiff TIP appeals summary judgment of non-infringement.  TIP owns two patents related to “inmates phones” for prisoners’ use in correction facilities.  TIP had separately sued others, but had summary judgment of non-infringement entered against it (on appeal as 2007-1279 and 1241). 

Here, the court had previously dismissed AT&T and SBA with prejudice, and Judge Lee Rosenthal has now granted defendant Securus summary judgment of non-infringement.  Securus apparently is the parent-holding company of one of the defendants in the other case.  Summary judgment is appropriate because (1) as a holding company Securus does not make, use, sell or offer phones for sale and is not liable for subsidiaries under Stucki or Tegal; and (2) issue preclusion from the other case applies to TIP.  The court also denied TIP’s motion to stay pending the appeal from the other case.

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