Friday, February 6, 2009

Court Denies Permanent Injunction, Rejects Annual Flat-Rate Royalty, and Sets "Preliminary" Per-Unit Ongoing Royalty

The court denied Dell's motion for a permanent injunction and "preliminarily" set an ongoing royalty of $4 per infringing unit. The court also rejected the notion of an annual flat-rate royalty. "Both sides’ briefing concerning a reasonable ongoing royalty rate fails to base suggested rates on actual economic analysis or evidence adduced at trial. . . . Any yearly flat-rate royalty amount is unreasonable and is rejected." The parties were ordered to confer concerning the "preliminary" per-unit royalty and to file objections if an agreement could not be reached.

Mass Engineered Design, Inc. v. Ergotron, Inc., 2-06-cv-00272 (TXED February 4, 2009, Order)

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