Inkit, Inc. v. airSlate, Inc.

District Court, D. Delaware·Decided March 26, 2025·No. 1:23-cv-00793·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

INKIT, INC., Plaintiff/Counterclaim Defendant, Civil Action No. 23-00793-RGA V. AIRSLATE, INC., Defendant/Counterclaim Plaintiff.

MEMORANDUM OPINION Gabriela Monasterio, Travis Steven Hunter, Jason James Rawnsley, RICHARDS, LAYTON & FINGER, P.A., Wilmington, DE; Sarah Theresa Andrade, BAYARD, P.A., Wilmington, DE; Charles Brandon Browning, H. William Bloom, II], MAYNARD NEXSEN PC, Birmingham, AL, Attorneys for Plaintiff/Counterclaim Defendant. Mary Claire McCudden, MARSHALL DENNEHEY, PC, Wilmington, DE; Gregor Hensrude, Petra N. Ambrose, KLINEDINST PC, Seattle, WA; Kevin Gramling, KLINEDINST PC, Irvine, CA, Attorneys for Defendant/Counterclaim Plaintiff.

March), 2025

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Before me is Plaintiff Inkit’s motion for summary judgment on Defendant airSlate’s second amended counterclaim, and first, fourteenth, and seventeenth affirmative defenses. (D.I. 117). I have reviewed the parties’ briefing. (D.I. 118, 133, 144). For the reasons set forth below, Inkit’s motion for summary judgment as to Counts I and II of airSlate’s second amended counterclaim is GRANTED. Inkit’s motion for summary judgment as to Count III of airSlate’s second amended counterclaim is DENIED. Inkit’s motion for summary judgment as to airSlate’s first, fourteenth, and seventeenth affirmative defenses is GRANTED. I. BACKGROUND Inkit filed the instant suit on July 21, 2023. (D.I. 1). After dropping its Lanham Act claim, Inkit now alleges four counts—three state law claims that are similar to various provisions of the Lanham Act, and a breach of contract claim for breach of a settlement agreement (the “Agreement”). (D.I. 2 at 13-16; see D.I. 194 at 3 of 25). airSlate filed an answer and counterclaims (D.I. 12), an amended answer and counterclaims (D.I. 20), and a second amended answer and counterclaims (D.I. 83). airSlate’s operative answer and counterclaims assert twenty-two affirmative defenses and three counterclaims: (1) breach of the implied covenant of good faith and fair dealing; (2) reformation based on mutual or unilateral mistake; and (3) breach of contract. (D.I. 83 at 25-31). Previously, on March 2, 2023, Inkit sued airSlate for improper use of Inkit’s trademarks in advertisements. (D.I. 103-1 at 5-8); see Inkit, Inc. v. airSlate, Inc., No. 23-cv-00232 (D. Del. Mar. 2, 2023), D.I. 1. The parties settled the earlier case. The Agreement states in part: 2: airSlate’s Obligations. In addition to transmission of the Settlement Payment, airSlate agrees to the following obligations:

(a) airSlate shall not use or publicly display or cause others to use or publicly display the Mark, in any form or manner, including without limitation in airSlate’s web-based or other advertising, that infringes upon or otherwise violates Inkit’s rights in the Mark; and (b) airSlate shall not bid on the keywords that are the same as or confusingly similar to the Mark (the “Prohibited Keywords”) listed on internet search engines (including without limitation Google® and Bing®) or other online platforms for a period of five (5) years from the Effective Date (the “Prohibited Bidding Period”). airSlate shall have a grace period of thirty (30) days from the Effective Date to implement any measures necessary to ensure compliance with this provision. In the event that after the conclusion of the grace period airSlate bids on the Prohibited Keywords, airSlate shall have ten (10) days from the date on which airSlate becomes aware of such a bid or is notified by Inkit of such a bid to remove any advertisements associated with such a bid. In the event that airSlate bids on the Prohibited Keywords seven (7) or more times during the Prohibited Bidding Period, airSlate shall be in material breach of this Settlement Agreement regardless of whether such advertisements are removed. (D.I. 3 at 2-3 of 6, § 2). 5. Confidentiality. This Settlement Agreement and its terms shall be kept confidential, except that the Parties may disclose the fact of this Settlement Agreement and that its terms are confidential, and may further disclose this Settlement Agreement to any governmental authorities to whom disclosure is required, to auditors, insurers, reinsurers, legal and financial advisors and accountants to the extent necessary to receive professional advice or as part of any transaction involving a Party and then, in each such case only if such persons are expressly made aware of this confidentiality provision. (id. at 3 of 6, § 5). 6. Specific Performance; Injunction. Notwithstanding the Paragraphs titled “Confidentiality” and “Dismissal and Release”, or as otherwise set forth herein, in the event a Party is alleged to have breached this Settlement Agreement, or if any action or proceeding relating to this Settlement Agreement is initiated, this Settlement Agreement will be admissible in any such action or proceeding. (Id. at 3-4 of 6, § 6). 8. Entire Agreement; Alterations, Amendment; or Modification. This Settlement Agreement constitutes the entire agreement between the Parties with respect to the resolution of the Lawsuit... .

at 3 of 6, § 8). 12. Rules of Construction. The Parties have participated jointly in the negotiation and drafting of this Settlement Agreement. In the event an ambiguity or question of intent or interpretation arises, this Settlement Agreement is to be construed as if drafted jointly by the Parties and no presumption or burden of proof is to arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Settlement Agreement. at 5 of 6, § 12). 14. Representations and Warranties. The Parties (i) acknowledge that neither they nor their agents or attorneys have made any promise, representation, or warranty, whether express, implied or statutory, not confirmed in this Settlement agreement that concerns the subject matter herein in order to induce the execution of this Settlement Agreement; (ii) acknowledge they have not entered into this Settlement Agreement in reliance on any promise, representation, or warranty except as expressly set forth in this Settlement Agreement; and (iii) knowingly waive any and all claims that this Settlement Agreement, including any and all releases contained therein, was induced by any misrepresentation or non- disclosure, and knowingly waive any and all rights to rescind or avoid this Settlement Agreement based on presently existing facts, known or unknown. (Id. at 5 of 6, § 14). Il. LEGAL STANDARD “The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” FED. R. Civ. P. 56(a). The moving party has the initial burden of proving the absence of a genuinely disputed material fact relative to the claims in question. Celotex Corp. v. Catrett, 477 U.S. 317, 330 (1986). Material facts are those “that could affect the outcome” of the proceeding. Lamont v. New Jersey, 637 F.3d 177, 181 (3d Cir. 2011) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986)). “[A] dispute about a material fact is ‘genuine’ if the evidence is sufficient to permit a reasonable jury to return a verdict for the nonmoving party.” Jd. The burden on the moving party may be discharged by pointing out to the district court that there is an absence of evidence supporting the non-moving party’s case. Celotex, 477 U.S. at 323.

The burden then shifts to the non-movant to demonstrate the existence of a genuine issue for trial. Matsushita Elec. Indus. Co. v.

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Inkit, Inc. v. airSlate, Inc., (D. Del. 2025).

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