Wednesday, June 17, 2009

Damages Award Not Limited by Infringer's Net Profits

On remand, the court granted plaintiff's motion for judgment and increased its damages award from $279,225 (based upon defendants' actual profits) to $2,792,250 (based upon a reasonable royalty). "Reassessing the damages . . . the Court recognizes that 'there is no rule that a royalty be no higher than the infringer’s net profit margin.' Moreover, a rule capping the reasonable royalty amount at the level of the infringer’s profits would have the effect of 'insur[ing] the infringer against losses in those situations where actual profits are less than the royalty level that would have been freely negotiated prior to the infringement.'"

Heeling Sports Ltd. v. U S Furong Intl Inc. et al, 2-06-cv-07624
(CACD June 15, 2009, Order) (Cooper, J.)

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