Wednesday, July 20, 2016

Under Halo, Enhanced Damages Claim Does Not Require Request for Preliminary Injunction

The magistrate judge recommended denying defendant's motion to dismiss plaintiff's willful infringement claim for failure to state a claim and found that the Supreme Court's recent decision in Halo Elecs., Inc. v. Pulse Elecs., Inc., 136 S. Ct. 1923 (2016), did not require plaintiff to first seek a preliminary injunction. "While true that the '[In re Seagate Tech., LLC, 497 F.3d 1360 (Fed. Cir. 2007),] test' is distinct from Seagate's preliminary injunction requirement, the court finds in Halo a wholesale supplanting of the Federal Circuit's 'inelastic constraints' in favor of an approach that affords district courts the discretion to mete out damages as they see fit; with or without a plaintiff moving for a preliminary injunction. Indeed, if in the midst of its derogation of Seagate, the Court had intended for a significant aspect of that case to remain intact, it likely would have said so. Halo thus broadly rejects any formal restriction on a district court's discretion to award enhanced damages."

SimpliVity Corporation v. Springpath Inc., 4-15-cv-13345 (MAD July 15, 2016, Order) (Hennessy, M.J.)

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