Appeal from a summary judgment of the United States District Court for the Central District of Illinois in favor of Charles R. Christianson and International Trade Services, Inc. (ITS) (Christianson). The court held Colt Industries Operating Corp. (Colt) liable under: (1) sections 4 and 16 of the Clayton Act ( 15 U.S.C. § 15, 26) and sections 1 and 2 of the Sherman Act ( 15 U.S.C. § 1, 2), because Colt asserted trade secrets the court deemed "invalid" for failure of Colt to disclose them in nine U.S. patents the district court declared invalid for noncompliance with best mode and enablement provisions of 35 U.S.C. § 112; and (2) the theory of tortious interference with contract. Christianson v. Colt Industries Operating Corp., 609 F. Supp. 1174, 227 USPQ 361, final judgment on liability, 613 F. Supp. 330 (C.D.Ill. 1985). We reverse in part, vacate in part, and remand.
In the process, the District Court invalidated nine of Colt's patents, declared all trade secrets relating to the M16 unenforceable, enjoined Colt from enforcing "any from of trade secret right in any technical information relating to the M16," and ordered Colt to disgorge to petitioners all such information. 613 F. Supp. 330, 332 (CD Ill. 1985). Respondent appealed to the Court of Appeals for the Federal Circuit, which, after full briefing and argument, concluded that it lacked jurisdiction and issued an unpublished order transferring the appeal to the Court of Appeals for the Seventh Circuit.
In May 1985, Judge Morgan granted Christianson's Motion for Summary Judgment on liability on the entire antitrust and tortious interference complaint. Christianson v. Colt Industries Operating Corp., 613 F. Supp. 330 (C.D.Ill. 1985). The Court stayed its decision pending Colt's appeal. See, Christianson v. Colt Industries, 613 F. Supp. 330 (C.D.Ill. 1985) (Exhibit 6 attached to Radice affidavit).
Id. The district court did not stop at trade secret invalidation, however, but continued on to grant relief to Christianson which had neither been sought nor briefed in the motions for summary judgment. First, the district court ordered Colt to disgorge all of its trade secrets relating to the M-16, whether those trade secrets were related to the patents at issue or not. Christianson v. Colt Industries Operating Corp., 613 F. Supp. 330, 331 (C.D. Ill. 1985). Second, the court granted summary judgment to Christianson on both count I, the antitrust count, and count II, the tortious interference count. Christianson, 609 F. Supp. at 1185.
Thus, it granted Christianson's motion for summary judgment as to liability and denied Colt's motion. On July 19, 1985, 613 F. Supp. 330, the district court entered its "Final Judgment on Liability," in which (1) it was ordered that a trial be held to determine the damages Christianson sustained as a result of Colt's anticompetitive activities, (2) nine of Colt's patents were invalidated "from their inception," and (3) all trade secrets regarding the M16, whether connected with the patents or not, were declared void and unenforceable. Colt was enjoined from asserting or seeking to enforce its now invalid trade secrets, ordered to preserve the technical information it had about the M16, and directed to remove its proprietary legends and confidentiality designations from its documents.