Raytheon will continue to pursue its claims for significant damages resulting from theft of trade secrets and misappropriation of intellectual property by Indigo Systems Corporation and FLIR Systems, Inc., following a ruling by the U.S. Court of Appeals for the Federal Circuit that reversed an August 2009 decision by a federal district court in Texas.
The unanimous decision by the three-judge appellate court panel overturned the district court’s ruling that had dismissed, on statute of limitations grounds, trade-secret misappropriation claims relating to infrared camera technology brought by Raytheon against Indigo/FLIR.
The Court of Appeals held that Raytheon had alleged that it reasonably relied on Indigo/FLIR’s repeated, but false, assurances that specific policies and procedures had been implemented to safeguard Raytheon’s trade secrets. The Court of Appeals thus revived the case and returned it to the district court for further proceedings.
The district court, in its earlier ruling, had held that Raytheon’s claims were time-barred as a matter of law on the theory that Raytheon should have suspected the wrongdoing and brought the lawsuit earlier. The Court of Appeals rejected that opinion, explaining that the district court had improperly resolved genuine issues of material fact against Raytheon and thereby intruded on the province of a jury.
The case is Raytheon Co. v. Indigo Systems Corp., 2011-1245 and 2011-1246, U.S. Court of Appeals for the Federal Circuit. The lower court case is Raytheon Co. v. Indigo Systems Corp., 07-CV-0109, U.S. District Court for the Eastern District of Texas (Sherman).