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Pre-Litigation Settlement

No-Contest Clause in Pre-Litigation Settlement Unenforceable

In Natural Alternatives International, Inc. v. Allmax Nutrition, Inc., No. 16-cv-01764-H-AGS (S.D. Cal., June 26, 2017), the Southern District of California held that a clause barring a licensee from contesting the validity of a patent in a pre-litigation settlement or license agreement is unenforceable. Plaintiff Natural Alternatives International owns patents on dietary supplements. Defendant Allmax sells dietary supplements that allegedly...

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