Court Enhances LG’s Liability for Willful Infringement

On November 2, 2016, Judge Gilstrap issued an order enhancing damages against LG and entering final judgment for Noroozi PC’s client, Core Wireless Licensing S.a.r.l.

The Court’s decision emphasized LG’s detailed pre-suit knowledge of the patents-in-suit, as well as its licensing negotiation conduct, in which LG invited Core Wireless representatives to Korea only to state that LG found litigation “preferable” to a license.

The Court also noted testimony obtained during a deposition by Kayvan Noroozi, in which LG’s corporate representative admitted that “after thorough review of the patents-in-suit he concluded that the patents are novel and non-obvious.” Dkt. 47 at 2.

In conclusion, the Court found that LG’s conduct was “driven by its resistance to being the first in the industry to take a license, and not by the merits or strength of its non-infringement and invalidity defense.” Dkt. 47 at 3.

The decision appears to be the first damages enhancement in a standards-essential patent case. LG had previously sought to categorically preclude such an outcome through a motion for summary judgment, arguing that willful infringement is unavailable in cases involving standard-essential patents. The Court disagreed, acknowledging extensive evidence of willfulness presented in Core Wireless’s opposition briefing and refusing to adopt LG’s “bright line” proposition.

Orders

Enhancing damages

Denying summary judgment

 

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