Intellectual Property And Technology Litigation: Delaware State Courts

Similar to the Delaware District Court’s prominence in patent litigation, the Delaware Chancery Court, with its exclusive equity jurisdiction for the Delaware state courts and national corporate reputation, has been at the forefront of trade secret litigation.  Morris Nichols has successfully represented clients and obtained injunctions in high-profile trade secret disputes in the Court of Chancery since the 1960s.  Our cases have involved technologies such as chemical processes, computer logic and, more recently, chicken pox vaccine.  Companies with valuable technology have also long regarded the Chancery Court, with its efficient adjudication procedures, as a receptive forum for license agreement disputes needing prompt equitable relief.

In addition, jurisdiction of the Court of Chancery since 2003 has been expanded so that businesses incorporated or doing business in Delaware can take advantage of increased access to the court for certain technology disputes where money damages are sought, and for mediation of business disputes generally.  In order for a technology dispute to be in the Court of Chancery, the parties must consent to jurisdiction by stipulation or agreement, at least one party must be a business entity formed under Delaware law or having its principal place of business in Delaware, and if damages are sought, the amount in controversy must exceed $1 million.  10 Del. C. § 346.  Under a parallel provision, 10 Del. C. § 347, businesses have access to the Court’s well-honed expertise in complex business disputes for mediations.  For further information on the Chancery Court’s expanded jurisdiction, click here.