MNP Ltd. was appointed as Receiver of 2093924 Ontario Inc. (“209”).
The Receiver sought court approval for an Amended Asset and Real Estate Purchase Agreement (APA) to sell 209’s assets to Klair Group Industries Ltd. (“Klair”).
209 operates the "Wash Factory" truck wash.
Patent Dispute:
1643434 Alberta Ltd. (“164”) opposed the sale, citing a patent on the facility’s "3 Door Car Wash Design."
The Receiver argued that 164’s patent rights were exhausted when the facility was sold to 209 in 2016.
Court's Findings:
Doctrine of Patent Exhaustion: Once a patented item is sold, the patentee’s control over that item ends. The court found 164’s patent rights were exhausted in the 2016 sale to 209.
Sale Process: The Receiver’s efforts to market the facility were sufficient, and the APA terms were fair and reasonable.
Decision:
The APA was approved.
The Wash Factory sale to Klair was allowed without restrictions from 164’s patent.
Ancillary relief requested by the Receiver was granted, including approval of their activities and deeming certain notices sufficient.
The document did not specify the exact total monetary award
