International Telemeter, Corporation v. Hamlin International Corporation and Philip D. Hamlin

Hamlin International Corporation and Philip D. Hamlin (collectively Hamlin) appeal from the district court’s order award ing International Telemeter Corporation (ITC) post-judgment interest at the rate actually earned by funds deposited in an escrow account rather than at the 9% rate allowed by New York law.

FACTS

In 1965, ITC filed for a patent for a method of circuitry used in cable television converters. The patent was issued in 1967. While the patent was pending, Hamlin began to manufacture the converters and became the largest manufacturer of them in the United States.

In 1968, ITC sued Hamlin for patent infringement. In 1973, ITC and Hamlin settled through a patent license agreement. Hamlin agreed to pay a $2.00 royalty on each converter it sold. The agreement specified that New York law governed the relationship between the parties.

In 1976, ITC filed the present action for an accounting and payment of past-due royalties under the license agreement. In October 1980, the court granted summary judgment for ITC on the issue of Hamlin’s liability for royalties due. The parties stipulated to an order obligating Hamlin to deposit the royalties into an escrow account pending…