Posts Tagged: "damages"

Stay on Top of Hot Topics in Patent Damages Litigation

In patent litigation, damages issues are sometimes treated as an afterthought when compared to the issues of infringement and invalidity. However, achieving a client’s goals requires an attorney to place damages at the center of the litigation strategy from the very beginning. Damages, quite simply, can make or break a case. And it is a quickly evolving field, rife with inconsistent judicial decisions, vague standards, and new techniques for measuring damages. Below are some of the current hot topics in patent litigation—and tips for practitioners on both sides of the “v” on how to handle them.

Federal Circuit Clarifies WesternGeco Approach to Foreign Damages

In a lengthy, precedential opinion authored by Judge Taranto, the U.S. Court of Appeals for the Federal Circuit (CAFC) on Wednesday, March 27, affirmed a district court’s decision invalidating the claims of two of Trading Technologies’ (TT’s) patents as being patent ineligible under Section 101 and also clarified the application of a 2018 Supreme Court ruling on foreign damages. Harris Brumfield, as Trustee for Ascent Trust, is the successor to TT, which sued IBG LLC in 2010 for infringement of four patents: U.S. Patent Nos. 6,766,304; 6,772,132; 7,676,411; and 7,813,996. All of the patents’ specifications describe “assertedly improved graphical user interfaces for commodity trading and methods for placing trade orders using those interfaces.”

Jury Awards Photographer Max Damages in Copyright Suit Against Senior Living Giant

A California jury on Monday awarded what is reportedly the “largest maximum statutory damages verdict for photography infringement in U.S. history,” according to a press release issued by the plaintiff’s counsel in the case. Scott Hargis is an architectural photographer who sued Pacifica Senior Living Management LLC in September 2022 for damages and injunctive relief related to infringement of 43 of Hargis’ photos that Pacifica used to advertise and market its senior living facilities.

Key U.S. District Court Cases with Implications for IP in the New Year

Although the proceedings before federal district courts may not garner as much attention as those of the U.S. Court of appeals for the Federal Circuit or the Supreme Court, they can be an important proving ground for the decisions rendered by those courts. And 2023 was no exception to that rule. As discussed below, the Zogenix v. Apotex and Teva v. Eli Lilly decisions provide a glimpse into what litigants can expect in the aftermath of the GSK v. Teva and Amgen v. Sanofi decisions, respectively. These cases will have an especially significant impact on the life sciences industry, and watching how these decisions are applied by the district courts should be a priority for practitioners in this space.

CAFC Partially Affirms for VLSI on Infringement But Vacates and Remands for New Trial on Damages

On December 4, the U.S. Court of Appeals for the Federal Circuit (CAFC) issued a precedential ruling in the ongoing patent battle between computer chip patent owner VLSI and major chipmaker Intel Corp. While the court affirmed the infringement findings underpinning the bulk of VLSI’s $2.175 billion jury verdict awarded back in March 2021, the panel ordered a retrial of damages award for one of two asserted patents and dismissed the doctrine of equivalents infringement finding for the other patent. The Federal Circuit also found that the district court abused its discretion by denying Intel’s motion for leave to add a license defense to its case.

SCOTUS Declines Solving Circuit Split on Awarding Avoided Costs in Trade Secret Cases

On November 20, the U.S. Supreme Court denied a petition for writ of certiorari filed in Tata Consultancy Services Ltd. v. Epic Systems Corp. The denial leaves in place an appellate court decision awarding $280 million for unjust enrichment and punitive damages in a trade secret misappropriation case where the plaintiff suffered no economic harm and the defendant gained no actual benefit from the misappropriated information.

Court of Federal Claims Dismisses Psychological Damage Claims Filed Against USPTO

On July 25, the U.S. Court of Federal Claims (CFC) issued a ruling in Pulnikova v. U.S. dismissing monetary damages claims for alleged violations of 42 U.S.C. § 1983 by patent examiners and officials at the U.S. Patent and Trademark Office (USPTO). Although the CFC expressed its sympathy for the inventor’s frustrations, including the pro se filing of “appeal-books” containing thousands of pages responding to office actions, the court added that it lacked subject matter jurisdiction to award the type of damages sought.

Painting with a Broad Brush: The European Commission’s Failure to Distinguish Seeking Damages for Past Infringement from Seeking an Injunction

Previously, we wrote about how alleged concerns of “hold-up” and a lack of “transparency”, two non-legal terms without accepted definitions, are being used to advocate for special rules applicable to patents subject to declarations regarding Fair, Reasonable and Non-Discriminatory (FRAND) licensing. These vague concepts are specifically chosen to obfuscate the real issues impacting FRAND licensing and used in an effort to shift traditional burdens of proof, regulate behavior previously found not to violate antitrust / competition law, and rewrite the express language of the commitment made by patent owners to the European Telecommunications Standards Institute (ETSI). The European Commission (EC) is the latest bull to enter the FRAND licensing China shop.

Countdown to the Unified Patent Court, Part III: Remedies

The Unified Patent Court (UPC) will go live in less than a month, on June 1, 2023. Thus, it’s time to prepare for the biggest change in the global IP landscape in more than a decade. To facilitate such preparation, we will be providing a series of five articles that will deal with the most important aspects of the UPC. Whereas Part 1 focused on the designated UPC judges, and Part 2 on the timelines that govern the proceedings before the UPC, Part III will illustrate the remedies (and the potential enforcement of such remedies) that are available at the UPC in a main action.

Eleventh Circuit Upholds Sanctions in Energy Drink Dispute for Failure to Provide Computation of Damages

On Wednesday, August 3, the U.S. Court of Appeals for the Eleventh Circuit affirmed a district court’s ruling against Vital Pharmaceuticals, Inc. (VPX) in the form of sanctions for violating its discovery obligations in a trade dress dispute with Monster Energy Company. The Eleventh Circuit also denied Monster’s motion for sanctions in the form of attorney’s fees and double costs.

CAFC Affirms California Court’s Claim Construction and Damages Calculation in Flash Drive Infringement Suit

On Friday, the U.S. Court of Appeals for the Federal Circuit (CAFC) affirmed a decision by the U.S. District Court for the Central District of California from an appeal by Kingston Technology Company LLC, in which the district court held that Kingston willfully infringed U.S. Patent No. 6,926,544 (‘544 patent) and awarded $7,515,327.40 in compensatory damages. The CAFC said in part that the district court can judicially correct claims when there are “obvious minor typographical and clerical errors in patents” without changing the scope of the claim.  

CAFC Clarifies Infringement Analysis and Vacates a Finding of Noninfringement for Hulu

On May 11, the United States Court of Appeals for the Federal Circuit (CAFC) affirmed the claim construction and decision of the United States District Court for the Central District of California to exclude evidence relating to damages but vacated its infringement determination and remanded a case alleging that Hulu, Inc. infringed Sound View Innovations, Inc.’s patent for data streaming technology. Sound View is the owner of expired U.S. Patent No. 6,708,213 (the ‘213 patent), which discloses “methods which improve the caching and streaming of multimedia data (e.g., audio and video data) from a content provider over a network to a client’s computer.” In June 2017, Sound View sued Hulu, alleging that its “Hulu Streaming Video on Demand products” infringed six Sound View patents, though only claim 16 of the ‘213 patent remained at issue on appeal.

Amici Back Cisco’s Bid for SCOTUS Review of Enhanced Damages Standard

Comcast and the High Tech Inventors Alliance (HTIA) filed amicus briefs last week backing a Supreme Court petition brought by Cisco Systems, Inc. last month. The petition asks the Court to consider whether: 1) enhanced damages may be awarded absent a finding of egregious infringement behavior; and 2) whether the U.S. Court of Appeals for the Federal Circuit (CAFC) may award enhanced damages without first allowing the district court to exercise its discretion to decide that issue. Cisco filed the petition for a writ of certiorari on March 16, following a November 2021 decision of the Federal Circuit that reversed a district court’s denial of SRI International’s motion to reinstate a jury’s willfulness verdict against Cisco. That ruling restored the district court’s award of enhanced damages and affirmed an award of attorney fees for SRI. The CAFC specifically clarified that its reference to language in the Supreme Court’s ruling in Halo Elecs., Inc. v. Pulse Elecs., Inc., 136 S. Ct. 1923, 1934 (2016) on a first appeal in the case was not meant to create a heightened requirement for willful infringement.

CAFC Orders New Damages Trial for Roche, Clarifies Standard for Patent Damages Limitations Period

On April 8, in a mixed and split precedential decision, the U.S. Court of Appeals for the Federal Circuit (CAFC) affirmed, reversed, vacated, and remanded a decision by the U.S. District Court for the district of Delaware in a patent infringement suit brought by Meso Scale Diagnostics (Meso) against Roche Diagnostic Corporation and BioVeris Corporation (collectively Roche). Judge Pauline Newman dissented. Meso brought suit claiming that Roche violated exclusive license rights belonging to Meso by both direct and induced infringement of their patents. The CAFC affirmed the district court’s findings on the direct infringement claim, reversed the induced infringement finding, vacated the awarded damages, and remanded for a new trial on damages.

CAFC Orders New Trial on Damages, Clarifies IPR Estoppel Rule in Appeal of Caltech’s $1.1 Billion Win Against Apple and Broadcom

On February 4, in a mixed precedential decision, the U.S. Court of Appeals for the Federal Circuit (CAFC) affirmed, vacated, and remanded in part a decision by the U.S. District Court for the Central District of California in a patent infringement suit filed by the California Institute of Technology (Caltech) against Broadcom Limited, Broadcom Corporation, and Avago Technologies (collectively “Broadcom) and Apple Inc. The suit was related to Caltech’s U.S. Patent 7,116,710 (‘710 patent), U.S. Patent 7,421,032 (‘032 patent), and U.S. Patent 7,916,781 (‘781 patent). The CAFC affirmed the district court’s denial of judgment as a matter of law (JMOL) on infringement because the jury’s verdict of infringement of the declared claims of the ‘710 and ‘032 patents was supported by substantial evidence and the district court’s construction of the claim limitation “repeat” was not erroneous.