McElmurry v. Arkansas Power & Light Co.
Court of Appeals for the Federal Circuit
995 F.2d 1576 (1993)
McElmurry (plaintiff) sued Arkansas Power & Light Co. (AP&L) (defendant) for patent infringement over a system for collecting particulate matter during coal burning. AP&L consultant Bowman and AP&L employee Roberts had developed the invention while working for and directed by AP&L. After leaving AP&L, Bowman patented and licensed the invention to McElmurry, who tried but failed to win a bid to sell and install it at AP&L's own plants. AP&L then gave the invention's specifications to a different company to build and install it in AP&L's power plants, prompting this suit. The district court granted AP&L summary judgment, finding it held a shop right in the invention, and McElmurry appealed.
Whether a company may acquire a license to a patent where a former employee invented and patented the invention while working for that company.