Ryan Data Exchange Ltd.'s victory over Graco Inc. in a patent license dispute survived Graco’s appeal to the U.S. Court of Appeals for the Eighth Circuit Jan. 10.

Relying on a provision of Iowa law, Graco argued that it shouldn’t have been assessed $313,000 in monetary damages because Rydex had also breached the same license agreement. Rydex and Graco had agreed that Graco held the exclusive right to use Rydex’s patented technology in exchange for royalty payments.

Rydex sued Graco after more than a year of non-payment, according to the Eighth Circuit’s opinion.

But the Iowa statute required Graco to...