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Jury award in design-patent case vacated in light of Apple v. Samsung

Jury award in design-patent case vacated in light of Apple v. Samsung

Nordock v. Systems is a nonprecedential case decided on March 17, 2017 on appeal from the Eastern District of Wisconsin, on remand from the Supreme Court. There, a jury found defendant Systems infringed plaintiff Nordock’s design patent, and awarded Nordock $46,825 as a reasonable royalty, indicating that Systems’ profits were $0. The Federal Circuit vacated the jury award under §289  and remanded for a new trial. The Supreme Court vacated the Federal Circuit decision in light of Apple v. Samsung, and remanded.

The Federal Circuit vacated the jury award and remanded for a new trial on damages.

Damages under §289 involves two steps: “(1) identify the article of manufacture to which the infringed design has been applied; and (2) calculate the infringer’s total profit made on that article of manufacture.” “Article of manufacture” under the statute is “broad enough to embrace both  a product sold to a consumer and a component of that product, whether sold separately or not.”

A remand for a new trial on damages was necessary. The jury found that Systems’ profits were $0 despite that there was no evidence supporting such a number. The jury and the district court were confused regarding the interplay between sections 284 and 289. The fact that Nordock could recover under §284 (lost profits or a reasonable royalty) or alternatively under §289 (Systems’s total profits) “did not absolve the jury of its obligation to determine the amount of System’s total profits for purposes of determining damages under § 289.”

On remand, the trial court will provide the jury with a clear understanding of its obligation to determine profits under §289; and will determine what constitutes the relevant “article of manufacture.”

 

Nordock, Inc. v. Sys., Inc., 681 F. App’x 965 (Fed. Cir. 2017)

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