Patent Damages
6Jan/12Off

EDVA denies motion to stay payment of “sunset” royalties

Judge Jackson in EDVA denied a stay of so-called “sunset” royalties, holding that to do so would “circumvent the entire purpose of granting sunset royalty payments as part of an injunction.”  Plaintiff prevailed at trial, and in addition to $115M in damages, was also granted injunctive relief.  At Defendant’s urging, the Court provided the Defendant a six-month “sunset” period to continue selling the infringing devices while (presumably) working on a design-around.  For those units sold during the sunset period, however, the Court required that the Defendant pay the Plaintiff a per-unit royalty.  Thereafter, the Defendant moved to stay that per-unit royalty payment under Rule 62(d).  The Court held that Rule 62(d) was inapplicable in the current factual scenario, though, since the royalty payments were not a “money judgment” but instead a condition of staying the injunctive relief.  The Court opined that staying the royalty portion of the injunction would serve no legitimate purpose, as it would give the Defendant no disincentive to continuing to supply the infringing technology.

Comments (0) Trackbacks (0)

Sorry, the comment form is closed at this time.

Trackbacks are disabled.