Tuesday, October 4, 2011

Public Statements by Foreign Defendant's CEO Reflecting "Affront to the United States Patent System" Warrant Strong Enhancement of Ongoing Royalty

The court granted plaintiff's motion for an ongoing royalty, found that defendant's ongoing infringement was willful, and based on that finding, doubled the royalty rate for one product category. "[B]ecause the paramount determination is the egregiousness of [defendant's] conduct, the Court considers [defendant's] corporate attitude, which is reflected by its CEO's statement to a Chinese newspaper after the verdict in this case, which reads in part: 'The issue of patent infringement is being taken too seriously sometimes.' The Court finds that this statement by [defendant's] CEO shows [its] lack of respect for this Court and the jury's verdict. It is also an affront to the United States patent system -- a system of Constitutional origin. The Court, therefore, finds that this also warrants a strong enhancement because it further reflects the egregiousness of [defendant's] conduct. In accordance, the Court holds that the earlier calculated reasonable royalty rate of 0.75% should be doubled to account for enhancement due to willfulness."

Mondis Technology Ltd. v. Chimei InnoLux Corporation, et. al., 2-11-cv-00378 (TXED September 30, 2011, Order) (Ward, J.)

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