LOURIE, Circuit Judge.
Electronics for Imaging, Inc. ("EFI") appeals from the decision of the district court granting a motion to dismiss its lawsuit against Jan R. Coyle and Kolbet Labs under the Declaratory Judgment Act ("the Act"). Elecs. for Imaging, Inc. v. Coyle, No. C 01-4853 (N.D.Cal. Feb. 13, 2003) ("Dismissal Order"). Because the district court erred as a matter of law and hence abused its discretion, we reverse and remand.
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