Catalina Lighting, Inc., and Home Depot Usa, Inc., Third Party v. Lamps Plus, Inc. And Pacific Coast Lighting, Defendants/third Party

295 F.3d 1277, 63 U.S.P.Q. 2d (BNA) 1545, 2002 U.S. App. LEXIS 12904, 2002 WL 1401697
CourtCourt of Appeals for the Third Circuit
DecidedJune 28, 2002
Docket01-1563
StatusPublished
Cited by72 cases

This text of 295 F.3d 1277 (Catalina Lighting, Inc., and Home Depot Usa, Inc., Third Party v. Lamps Plus, Inc. And Pacific Coast Lighting, Defendants/third Party) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Catalina Lighting, Inc., and Home Depot Usa, Inc., Third Party v. Lamps Plus, Inc. And Pacific Coast Lighting, Defendants/third Party, 295 F.3d 1277, 63 U.S.P.Q. 2d (BNA) 1545, 2002 U.S. App. LEXIS 12904, 2002 WL 1401697 (3d Cir. 2002).

Opinion

*1281 PROST, Circuit Judge.

Catalina Lighting, Inc. (“Catalina”) and Home Depot USA, Inc. (“Home Depot”) appeal from the decisions of the- United States District Court for the Southern District of Florida denying their motion for judgment as a matter of law and entering judgment in accordance with a jury verdict that Catalina and Home Depot willfully infringed U.S. Patent No. 5,221,141 and U.S. Design Patent No. 353,904, that these patents have not been shown to be invalid or unenforceable, and that Catalina and Home Depot owed damages for their infringement. See Catalina Lighting, Inc. v. Lamps Plus, Inc., No. 99-CV-7200 (S.D.Fla. June 25, 2001). We affirm the district court’s rulings as to infringement, validity, and enforceability. However, we affirm-in-part and reverse-in-part the damages award because it is contrary to .law.

BACKGROUND

Lamps Plus, Inc. (“Lamps Plus”) is the owner of U.S. Patent No. 5,221,141 (“the '141 patent”) and U.S. Design' Patent No. 353,904 (“the '904 patent”). The '141 patent is a utility patent for a “Stand-Alone Electric Lamp” that has ■ a general area light source positioned at the top of a stem, as well as a plurality of adjustable light sources affixed to the stem for providing task lighting directed to specific areas. See '141 Patent,- Figs. 1-3, infra. The '904 design patent is for the ornamental design of a “Combined Torchiere Lamp and Adjustable Accent Lights.”

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Dennis Swanson, the inventor of these patents and President of Lamps Plus, calls his invention a “tree torchiere.” Lamps Plus sells tree torchieres and other lamps through its retail stores located in the Western states. Pacific Coast Lighting sells Swanson’s tree torchiere and other lighting products on a wholesale level throughout the United States. Lamps Plus and Pacific Coast Lighting have sold $22 million worth of tree torchieres since 1991. The lamps retail for $79-$99 each.

Home Depot also sells lamps and other lighting products. In 1998, one of Home Depot’s buyers observed a Swanson tree torchiere lamp at a Lamps Plus store and *1282 contacted Catalina to inquire whether Catalina could supply such a lamp to Home Depot. Upon investigation, counsel for Catalina learned that the Swanson tree torchiere was the subject of the '141 and '904 patents but suggested that infringement could be avoided by using a mechanism for attaching the adjustable lights to the stem of the torchiere that was different from the attachment mechanism required by the claims of the '141 patent. This attachment mechanism is a limitation of independent claim 5 of the '141 patent, which includes a

means for affixing each of said separate direct light reflectors to said stem at spaced apart positions disposed between said base and said general lighting means; said means for affixing each direct light reflector including: (a) a first hollow cylinder affixed to and extending from said stem; (b) a second hollow cylinder defining a through opening in a wall thereof rotatably affixed to said first hollow cylinder; (c) a protrusion extending from said light reflector, and (d) said protrusion being received within said second hollow cylinder and extending through said opening in said wall.
’141 patent, col. 4, 1. 63 col. 5, 1. 11. This means for affixing is shown above in Figure 4 of the patent as a ball-and-socket type joint.

Catalina chose to manufacture a lamp that used a clevis type hinge, as shown in the figure below:

In 1999, Catalina began selling its version of the tree torchiere lamp to Home Depot for $12.94 per lamp. Home Depot then sold these lamps retail for approximately $25 per lamp.

On September 10, 1999, Lamps Plus and Pacific Coast sued Home Depot in the Central District of California for infringement of the '141 and '904 patents and for trade dress infringement. In response, Catalina filed a declaratory judgment action in the Southern District of Florida on September 15, 1999, seeking a declaration that Catalina’s torchiere lamps do not infringe the '141 or '904 patents and that the patents are invalid and unenforceable. Lamps Plus filed a counterclaim for patent infringement and trade dress infringement by Catalina and a third party complaint for patent infringement and trade dress infringement by Home Depot. Lamps Plus dismissed the California action after the district court denied its motion for a temporary restraining order.

*1283 On November 24, 2000, Catalina filed a motion for summary judgment of nonin-fringement, invalidity under 35 U.S.C. § 103 and § 112, and unenforceability. The district court deferred ruling on Catalina’s . motion. On March 28, 2001, the court construed the affixing means 1 of claim 5 (the only element in dispute) as follows:

Catalina Lighting, Inc. v. Lamps Plus, Inc., No. 99-7200-CIV (Mar. 28, 2001) (Order Adopting Markman Findings).

The case proceeded to trial before a jury on April 2, 2001. After the close of all the evidence but before closing arguments, Catalina moved for judgment as a matter of law that it did not infringe the asserted patents, that the design patent would have been obvious, and'that Lamps Plus failed to prove damages for infringement of the design patent. The court denied Catalina’s motion, and on April 6, 2001, the jury returned a special verdict form stating that: Catalina infringed the '141 patent and owed damages of $660,000 (representing a reasonable royalty); Catalina infringed the '904 patent and owed damages of $275,194 (equaling Catalina’s profits); Home Depot infringed the '141 patent and owed damages of $630,190 (representing a reasonable royalty); Home Depot infring *1284 ed the `904 patent and owed damages of $492,748 (equaling Home Depot's profits); the infringement by Catalina and Home Depot was willful; neither patent was invalid for obviousness; and neither patent was unenforceable due to inequitable conduct. After trial, Catalina filed "renewed" motions for judgment as a matter of law regarding noninfringement, damages, 2 willful infringement, invalidity and unenforce-ability.

On June 25, 2001, the court entered judgment in accordance with the jury's verdict. Catalina Lighting, Inc. v. Lamps Plus, Inc., No. 99-7200-CIV (S.D. Fla. June 25, 2001) (Judgment on Jury Verdict and Permanent Injunction). The court, however, modified the damages award for infringement of the `141 patent, replacing the jury's separate findings for Catalina and Home Depot with a single award of $660,000 for which Catalina and Home Depot were jointly and severally liable. The court also assessed prejudgment interest and entered a permanent injunction against Catalina and Home Depot. The damages award, with interest, totaled $1,636,589.78. The court declined to enhance damages or award attorneys fees in spite of the jury's finding of willful infringement. Catalina Lighting, Inc. v. Lamps Plus, Inc., No. 99-7200-CIV (S.D. Fla. June 25, 2001) (Order on Post-Trial Motions).

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295 F.3d 1277, 63 U.S.P.Q. 2d (BNA) 1545, 2002 U.S. App. LEXIS 12904, 2002 WL 1401697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/catalina-lighting-inc-and-home-depot-usa-inc-third-party-v-lamps-ca3-2002.