Public statements by plaintiffs in the heat of litigation can become fodder for counterclaims as defendants seek leverage. The litigation privilege can be an early way out.
NSB Technologies sued Specialty Direct Marketing for copyright infringement based on a breached royalty agreement for the use of computer software. During the case, NSB made allegedly defamatory statements about SDM, giving rise to a counterclaim. Judge Keys of the Northern District of Illinois dismissed the counterclaim, finding that federal common law recognizes a litigation privilege barring such claims stemming from statements that are related to judicial proceedings.
NSB Technologies v. Specialty Direct Marketing, ... more »
