Marshall Jury Holds More Asserted Patents Not Infringed & Invalid

This case is a rematch between two companies which make and sell oilfield equipment used to blow stuff up.  Last year a Marshall jury in Judge Payne’s court held the six claims asserted in that case not infringed and invalid as (1) obvious, (2) anticipated and (3) due to the on sale bar. This year just two claims were asserted and the Marshall jury in Judge Payne’s court held them not infringed and invalid as well, but only as obvious this time.  

Patent jury verdict; indications on submission of Section 101 issues

A Marshall jury in Judge Gilstrap’s court deliberated through 6:15 pm Friday evening in this case, came back for two hours Saturday morning, and finally completed deliberations yesterday morning, returning a verdict in favor of the plaintiff for approximately $10 million.  I wanted to address in this post a couple of issues that aren’t in the major media coverage of the case, but might be of interest to practitioners.

Verdict in Maxell v. ZTE; Jury Findings On Eligibility Under Section 101

A Texarkana jury in Judge Schroeder’s court returned a verdict in favor of Maxell against defendant ZTE (USA), Inc. last Friday following a two-week trial.  The jury found all 16 claims from the 11 asserted patents infringed.  Eleven of the claim from seven patents were found to be infringed willfully. The jury found that four claims across two patents had not been shown to be invalid as anticipated or obvious (one question for all invalidity theories), and assessed damages at $43.3 million. But the jury also made an additional finding in the defendant’s favor with respect to five of the claims that bear some closer scrutiny, as it begins to tell us how 101 claims can be addressed in front of a jury.  This reminded me of how Judge Schroeder addressed a similar issue dealing with contract formation in my April jury trial in Texarkana, so I wanted to address that issue in some additional detail (as well as a few others) by analyzing the court’s instructions to the jury.

Kaist verdict – $400 million (updated post)

A Marshall jury in Judge Gilstrap’s court found the asserted claims willfully infringed in the Kaist case and awarded $400 million. It also rejected all of the asserted invalidity defenses.  The plaintiff is  the intellectual property arm of a South Korean research university.  The defendants are Samsung Electronics Co., Ltd, Qualcomm, Inc., and GlobalFoundries Inc..

A quick review indicates that this is the largest patent verdict in Marshall since January of 2011 in a medical device case, and the second largest in Judge Gilstrap’s court in the six-plus years he has been on the bench.  The only one larger was a Tyler case, Smartflash, which he set aside in postjudgment proceedings.

I’ll post separately on where that leaves us on verdicts compared to last year, and will attach the verdict when it’s posted.

Verdict in Apple v. VirnetX IV – $502.8 million

A Tyler jury in Judge Schroeder’s court returned a verdict yesterday in the latest VirnetX trial against Apple.  It found that Apple’s FaceTime and VPN On Demand infringed four VirnetX patents and set damages at $502.6 million.  It comes back today to begin the willful infringement portion of the trial. The first VirnetX trial in 2012 resulted in infringement and an award of $368 million for older Apple products.  The Federal Circuit affirmed the infringement finding but required a new trial on damages. Judge Schroeder combined the damages retrial on the older products with the soup to nuts trial on newer products in February 2016, which resulted in a $625 million verdict. Apple convinced him to set that combined verdict aside, thus requiring the two cases to be retried separately. On the older products damages retrial the jury found $302 million, which the Court later enhanced to $439 million, and that verdict is on appeal – and now the second verdict on the newer products is $502.6 million.  So the separate trials yielded verdicts of $804.6 million before enhancement, compared to the consolidated trial in 2016 of $625 million. How much of that is attributable to post-February 2016 sales I do not know.