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Lutron Gets Patent Theft Damages Reduced After ‘Wilful Infringement’ Case

Lighting control Company Lutron who was accused of ‘wilfully infringing’ the design and patents of GeigTech blind brackets has seen their damages cut to A$5.8M after initially being hit with damages of A$53.25M.

The judge hearing Lutron Electronics’ appeal of its loss to GeigTech slammed Lutron for their actions.

The basis of the court case was that Lutron infringed on patents the GeigTech held for its “exposed roller shades that appear to have no visible screws, or wires.

The original case in the United States District Court in the Southern District of New York before a jury, found in favour of GeigTech saw GeigTech awarded damages of nearly ten times the amount they were actually requesting.

Lutron appealed for a new trial, claiming the award was “grossly excessive” and that the evidence was insufficient to show they infringed on the GeigTech patents.

Because of the jury’s finding that the infringement was “wilful” GeigTech requested the court award it enhanced damages attorney fees, and a permanent injunction.

They claimed that Lutron had deliberately opted to poach their patented designs and intellectual property to try and remain competitive in a segment of the market that GeigTech dominated in.

In last week’s ruling the judge ruled this week that there was sufficient evidence to support the jury’s finding that Lutron wilfully infringed on the GeigTech patent. Lutron’s request for a new trial was denied.

However, Judge McMahon agreed with Lutron that the jury’s award of A$54.6 million in damages was “grossly excessive.”

“In this case, the jury completely surpassed the ‘upper limit’ of damages,” Judge McMahon said.

She went on to add that it “amounted to a royalty of nearly 10 times any amount requested by GeigTech or supported by the evidence of its expert.”

The judge told the company that there was nothing in the record from the trial to justify the additional money.

In the case of GeigTech, she noted that it did not raise the issue of compensation for lost profits at trial, so that argument is out.

The court gave GeigTech two options, agree to a A$5.8M million judgment amount and be done with it…or have a new trial strictly to decide damages. The company has 14 days to make its decision.

Lutron had filed a defamation counterclaim, saying that GeigTech defamed it by saying it had “poached GeigTech’s patent.”

But the jury found that Lutron had indeed poached GeigTech’s patents.

Both sides asked the judge to award it attorney fees. The judge denied both requests.

The judge also denied Lutron’s appeal for a new trial but left the door open – at GeigTech’s option – to have a new trial on damages only.

She also granted GeigTech’s motion for a permanent injunction against Lutron.

 



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