ON APPEAL FROM THE HIGH COURT OF JUSTICE
CHANCERY DIVISION
Claim No HC04 00159
The Royal Courts of Justice The Strand London WC2 A2U |
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B e f o r e :
Vice President of the Court of Appeal
LADY JUSTICE ARDEN
and
LORD JUSTICE LONGMORE
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CAMBRIDGE DISPLAY TECHNOLOGY LIMITED | Claimant | |
-v- | ||
E.I. DUPONT DE NEMOURS AND COMPANY | ||
(A company incorporated in Delaware) | Defendant |
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Smith Bernal WordWave Limited
190 Fleet Street, London EC4A 2AG
Tel: 020 7404 1400 Fax: 020 7404 1424
(Official Shorthand Writers to the Court)
MISS G ANDREWS QC (instructed by Eversheds) appeared for the defendant.
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Crown Copyright ©
Monday, 17th January 2005.
"The commercial background to the Agreement is that in March 2000 DuPont acquired a small Californian research and development company called Uniax Corporation, which then changed its name to DuPont Displays Inc. The business of Uniax consisted of the development of what is described as organic light-emitting display technology, which can be used to produce plastic and glass displays for a variety of purposes, including cellular telephones and portable computers. The development of these products required the use of CDT's invention, although it was said by the defendants that this was to be combined with Uniax's own technology in order to create a commercially exploitable end product. The incorporation of the patented polymer materials necessitated, however, a licence from CDT as patentee."
"'A Quarter' means the three months commencing on the effective date and each successive period of three months thereafter during the continuance of this agreement, and any shorter period ending on its termination 'quarterly' shall be construed accordingly."
"A sale will be deemed to have been made and payments due hereunder for such sales shall accrue:
(a) when invoiced to a Third Party ..."
"Within sixty (60) of the days of the end of (a) the first two Years under this Agreement, and (b) each Year thereafter, the Licensee shall, in the manner provided in clause 3.6 below, pay to CDT the shortfall if any between the royalties payable in accordance with clause 3.1 above and the Minimum Royalty payable with respect to the period in question."
"The royalties payable under clause 3.1(b) and any shortfalls under clause 3.5 above shall be paid within sixty (60) days after each quarter during the period of this agreement."
"The period of 12 months from the Effective Date and each succeeding period of 12 months during the period of this agreement."
"'Minimum Royalty' means in relation to each Year after January 1st 2003, US$1 million."
There is, I think, nothing else in the agreement to which I need specifically to refer.
"Means in relation to each year, after 1st January 2003, US$1 million."
"The shortfall, if any, between the royalties and the minimum royalties."