Product details

Involves a start-up, X-IT Products LLC, whose founders had designed an innovative, lightweight, and easy-to-use - yet strong - escape ladder. After X-IT had filed a patent application for the ladder in the United States, X-IT was approached by Kidde PLC, one of the largest vendors of fire protection products in the world. Negotiations to license X-IT's invention or to buy X-IT ensued. The parties entered into a confidentiality agreement, which gave Kidde's patent counsel access to X-IT's confidential patent application for the narrow purpose of reporting to Kidde whether the patent claims were weak or strong. After the X-IT founders saw Kidde representatives displaying a ladder at a major trade show that was almost identical to X-IT's ladder, X-IT's CEO had to decide what to do next. Although suing Kidde for violating the confidentiality agreement was an option, X-IT barely had sufficient cash to fill orders, not to mention pay attorney fees.