Explore a recent M&A legal case where an inventor takes legal action against a buyer for using his name without authorization. This blog post delves into the details of the dispute, legal rulings, and the key takeaway. Case reference: Yeager v. Innovus Pharmaceuticals, Inc.
M&A Stories
February 19, 2019
In a recent case, an inventor with expertise in pharmaceuticals found himself in a legal battle with a buyer who acquired rights to his product. Here’s a concise overview:
The Parties Involved:
The inventor held a Ph.D. in physical pharmacy and specialized in topical creams. He served as the CEO of the selling company, a prominent figure in the pharmaceutical industry.
The seller engaged the inventor’s company to develop a topical cream to treat sexual dysfunction. An agreement was reached, assigning all invention rights to the seller.
The Product Transfer:
The seller launched the product in April 2013. Shortly after, the seller and the buyer entered into an asset purchase agreement. The buyer obtained global marketing rights while the seller retained rights in the U.S. The buyer marketed the product under a different name.
The Legal Dispute:
The inventor alleged that the buyer used his name and implied endorsement without permission. He claimed that the buyer’s marketing materials falsely attributed quotes to the inventor, creating reputational harm.
The inventor filed a lawsuit in a Chicago federal district court, claiming the unauthorized use of his identity.
Legal Rulings:
The buyer sought to dismiss the lawsuit based on statute of limitations. The court disagreed, stating that each publication created a new violation.
The inventor’s claim was upheld under Illinois publicity law and federal trademark law.
Key Takeaway:
The rights to publicity should have been acquired from the inventor during the purchase.
Case Reference:
Yeager v. Innovus Pharmaceuticals, Inc., No. 18-cv-397., United States District Court, N.D. Illinois, Eastern Division, (February 5, 2019)
https://law.justia.com/cases/federal/district-courts/illinois/ilndce/1:2018cv00397/348294/51/
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