Monday, August 20, 2012

Seven Month Delay Investigating Infringement Allegations Followed by “Infinitesimal Change” to Accused Product Support Enhanced Damages and Attorneys’ Fees

The court granted plaintiff's motion for treble enhanced damages after the jury found willful infringement and the court found that all nine Read Corp. v. Portec, Inc., 970 F.2d 816 (Fed. Cir. 1992), factors favored such an award. "[E]ven after being sued in this case, [defendant] waited approximately seven months to determine if its products infringed the [patent-in-suit]. After learning that is products did infringe the [patent], [defendant] made an 'infinitesimal' change in an apparent attempt to stop future infringement. There was no evidence how [defendant] concluded this change was sufficient to prevent future infringement and, in fact, it was unclear whether the change was even made to all of [its] systems. . . . [Defendant] learned it was infringing in 2007 but did not disclose that until 2011. Between 2007 and 2011, [it] vigorously argued that no evidence existed which would establish infringement. Moreover, [defendant] did not alert its customers to the alleged changes in its systems meant to prevent future infringement and there were no meaningful changes to its system manuals reflecting that the operations had been altered."

Integrated Technology Corporation v. Rudolph Technologies, Inc., et al., 2-06-cv-02182 (AZD July 23, 2012, Order) (Silver, J.).

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