Wednesday, March 21, 2012

Permanent Injunction Granted With Sunset Provision Requiring Trebled Royalty of 9% on Future Sales

The court granted plaintiff's motion for a permanent injunction precluding infringement of its Ethernet chip patents, but required plaintiff to add a sunset provision temporarily allowing infringing sales with a trebled royalty of 9%. "[A] royalty of 3% of the selling price of the [accused] product. . . represents a reasonable royalty for an arm’s-length transaction. This is the rate implicitly found by the jury in awarding damages for violation of the [patent-in-suit]. . . . However, that is not the appropriate royalty where the Court in essence affords a license for what now is willful infringement. The Court orders a trebled royalty of 9% on all sales made during the Sunset Period."

Broadcom Corporation v. Emulex Corporation, 8-09-cv-01058 (CACD March 16, 2012, Order) (Selna, J.)

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