Jury verdict for willful infringement is upheld without enhanced damages
Telcordia Technologies, Inc. v. Cisco Systems, Inc., C.A. No. 04-876-GMS, January 6, 2009.
Sleet, C.J. Defendant’s JMOL motion and motion for a new trial on willful infringement are denied; plaintiff’s motion for a permanent injunction is denied. Parties are ordered to meet and confer on royalty rate going forward; plaintiff’s request for prejudgment interest and an accounting is granted but request for enhanced damages and attorney fees and expenses is denied.
The patents-in-suit relate to telecommunications networks. The ‘306 patent discloses a data transmission technique which provides a flexible migration strategy between present circuit networks and future broadband packet networks. The ‘633 patent relates to a residual time stamp technique for timing recovery in a broadband network. The ‘763 patent relates to a survivable or self-healing ring network that can withstand a cut line or failed node. The Court denies defendant’s challenges to the jury’s verdict of willful infringement on the basis of noninfringment, invalidity, indefiniteness, obviousness and improper inventorship. In addition, the Court refuses defendant’s request for a new trial on willfulness based on flawed jury instructions in light of the Federal Circuit’s recent holding in In re Seagate Tech., LLC. Seagate was decided after trial in this case but before the entry of final judgment. Although the jury instruction was erroneous, the error was harmless in light of the evidence adduced at trial. Plaintiff’s motion for a permanent injunction is denied. Plaintiff has been able to license the patents-in-suit which suggests that plaintiff has not been irreparably harmed. The parties are ordered to negotiate the terms of a reasonable royalty rate and for an accounting going forward but may seek assistance from the Court if their efforts are not successful. Prejudgment interest is granted at the prime rate, compounded quarterly. Despite the finding of willfulness, evidence was not strong enough to warrant enhanced damages. Plaintiff’s request for attorneys’ fees and expenses is declined.

