UCP International Co. v. Balsam Brands Inc.

ORDER DENYING MOTION TO DISMISS

INTRODUCTION

Balsam Brands Inc. and Balsam International Unlimited Company (together “Balsam”) move to dismiss the declaratory judgment action filed by UCP International Company Limited and Global United Enterprises Limited (together “UCP”), arguing that there is no valid case or controversy between the parties. Although Balsam admits that there is an existing legal controversy between it and UCP regarding whether UCP’s Inversion Tree infringes Balsam’s Flip Tree patents, it contends that UCP lacks standing to seek a declaratory'judgment because Balsam has not clearly indicated any intent to sue UCP for patent infringement. But a defendant’s representations that it does not intend to sue cannot defeat Article III standing in a declaratory judgment case. UCP has demonstrated that it has standing, and Balsam’s motion to dismiss UCP’s complaint is DENIED.

BACKGROUND

UCP manufactures and sells an .artificial invertible Christmas tree called the Inversion Tree. First Amended Complaint (“FAC”) ¶ 2. It has patents pending on the Inversion Tree. FAC ¶23. Balsam is a leading retailer of artificial Christmas trees and sells a product called the Flip Tree,…