Reebok-CCM Settles Royalties Lawsuit

On March 2, 2018, the lawsuit between Reebok-CCM Hockey (CCM) and Hefter Impact Technologies, LLC was dismissed after the two parties reached a confidential settlement. Back in September 2015, Hefter sued CCM alleging that CCM contractually owed royalties on hockey helmets that were derivative of a Hefter design. The recent settlement came before the scheduled April 17, 2018 trial.

Although the case never made it to trail, it did not gone without its fair share of litigation. For example, as we previously covered back in January 2017, Hefter brought a sanctions motion arguing that CCM employees disregarded a litigation memo, held and destroyed emails, attachments, and contents of a product manager’s laptop computer with hard copy files. In August 2017, Judge F. Dennis Saylor IV awarded Hefter the reasonable attorneys’ fees and costs it spent on bringing the sanctions motion; however, Judge Saylor said that severe sanctions were not appropriate “in light of the weak showing of prejudice and … lack of intent to deprive [Hefter] of evidence.”

Also, on February 14, 2018, we reported that Hefter argued that they should be allowed to depose six people, including Pittsburg Penguins star Sidney Crosby, even though a scheduling order originally stated that all depositions must be completed by September 30, 2016. In opposition, CCM argued that Hefter should not be allowed to retake/take six depositions on the eve of trial simply because they characterized the depositions as trial preservation depositions, Hefter realized they made a poor tactical decision in not taking three depositions, Hefter did a poor job in three other depositions, and of judicial economy.

The dispute seems that the case is over; however, according to the settlement order of dismissal, it is possible that the case could be re-opened within 60 days if the undisclosed terms are not met.

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