Saint-Gobain Autover USA, Inc. v. Xinyi Glass North America, Inc.

707 F. Supp. 2d 737, 2010 U.S. Dist. LEXIS 36129, 2010 WL 1416688
CourtDistrict Court, N.D. Ohio
DecidedApril 13, 2010
DocketCase 1:06CV2781
StatusPublished
Cited by12 cases

This text of 707 F. Supp. 2d 737 (Saint-Gobain Autover USA, Inc. v. Xinyi Glass North America, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saint-Gobain Autover USA, Inc. v. Xinyi Glass North America, Inc., 707 F. Supp. 2d 737, 2010 U.S. Dist. LEXIS 36129, 2010 WL 1416688 (N.D. Ohio 2010).

Opinion

MEMORANDUM OPINION

SARA LIOI, District Judge.

This matter is before the Court on the motion of Plaintiffs Saint Gobain Autover USA, Inc., Saint Gobain Sekurit Mexico, S.A., DE C.V., and Saint Gobain Sekurit USA (“Plaintiffs” or “Saint Gobain”) for enhanced damages, attorney’s fees, and prejudgment interest. (Doc. No. 224.) In addition to opposing Saint Gobain’s motion, Defendants Xinyi Glass North America, Inc. and Xinya Automobile Glass Co., Ltd. (“Defendants” or “Xinyi”) have moved for oral argument on Saint Gobain’s motion. (Doc. No. 230.) Saint Gobain has moved to strike Xinyi’s motion. (Doc. No. 236.)

BACKGROUND

The factual and procedural history surrounding this case has been set forth in previous decisions, most recently in the Court’s October 12, 2009 Memorandum Opinion, familiarity with which is presumed. For purposes of framing the issues raised by Saint Gobain’s motion for enhanced damages, it is sufficient to note that Plaintiffs are the patent holders of the '395 and '669 patents, which both relate generally to glazings, i.e., windshields, for installation in motor vehicles. 1 The '395 patent is entitled “Method of Centering Windshields Glazings,” and discloses and claims a method of centering a glazing upon a mounting bracket. The '669 patent, entitled “Spacer for Windshield Bracket,” discloses and claims a glazing with at least one profiled spacer with a lip portion projecting beyond the periphery of the glazing.

*743 On November 16, 2006, Saint Gobain brought suit against Xinyi, alleging patent infringement, and seeking an injunction against continued infringement, damages for past infringement, treble damages for willful infringement, and attorney’s fees and costs. (Doc. No. 9, Am. Compl. at 3.) Following a hearing on claim construction, and consideration of both pre- and post-hearing briefs from the parties, the Court announced its construction of the claims. Specifically, the Court found that the term “centering” and its related terms did not require construction, while the term “aligning” merited construction and related to the process of ensuring “a uniform distance between the bracket and the glazing along a contact surface of the spacer.” (Doc. No. 118, Memo. Op. at 10-13, 22-23.)

Xinyi subsequently sought summary judgment, and offered as defenses non-infringement, obviousness, and non-enablement. Both sides filed motions in limine to block from the Court’s consideration various defenses, arguments, and evidence. In a decision dated October 12, 2009, 666 F.Supp.2d 820 (N.D.Ohio 2009) the Court denied Xinyi’s summary judgment motion in toto. In so ruling, the Court granted Saint Gobain’s motion to strike Xinyi’s obviousness defense on the ground that Xinyi had failed to seasonably supplement its discovery responses to provide information regarding this defense in violation of Fed. R.Civ.P. 26(e). (Doc. No. 163, Mem. Op, 666 F.Supp.2d at 826-27.) While the Court also found that Xinyi had failed to provide discovery as to the defense of nonenablement, and failed to properly plead the defense in its answer, the Court permitted Xinyi to maintain the defense upon a finding that Saint Gobain had not been prejudiced by the omissions. 2 Further, in denying summary judgment, the Court found that the parties’ dueling experts on the subjects of non-infringement and nonenablement precluded a grant of summary judgment in favor of Xinyi. (Id. at 832-34, 834-35, 837-38.)

Beginning November 2, 2009, the Court presided over a seven-day jury trial. On November 10, 2009, the Court granted Saint Gobain’s motion for judgment as a matter of law on Xinyi’s non-enablement defense, finding that Xinyi’s expert, Samuel Phillips, was not qualified to render a decision on non-enablement, and Xinyi failed to otherwise provide any support for this defense. (TR at 1885.) At the trial’s conclusion, the jury returned a verdict in favor of Plaintiff on the issue of infringement, and awarded $10,896,558.00 in compensatory damages. (TR at 2000.) The jury also found that Saint Gobain had proven its right to a reasonable royalty, and awarded $47,457.00 in royalty damages, for a total damage award of $10,944,015.00. (TR at 2002.) Finally, the jury found that Xinyi willfully infringed both the '395 and the '669 patents. (TR at 2003.)

Plaintiffs have now moved for enhanced damages and prejudgment interest, under 35 U.S.C. § 294, and attorney’s fees, under 35 U.S.C. § 285. According to Plaintiffs, treble damages are appropriate because “Xinyi’s overall conduct warrants the maximum allowable increase in damages.” (Doc. No. 224, Mot. at 5.) Plaintiffs also argue that this is such an “exceptional” case, under 35 U.S.C. § 285, that the award of attorney’s fees is appropriate. Xinyi opposes any enhancement to the jury’s award, and, in fact, urges the Court *744 to set aside the jury’s finding of willfulness.

APPLICABLE LAW

Upon a finding of infringement, 35 U.S.C. § 284 requires a court to award “damages adequate to compensate for the infringement.” The same section gives a court discretion to increase the damages up to three times the amount awarded by the fact finder. Id.

The Federal Circuit announced a new standard for willfulness in In re Sea-gate Tech., LLC: “proof of willful infringement permitting enhanced damages requires at least a show of objective recklessness.” In re Seagate Tech., 497 F.3d 1360, 1371 (Fed.Cir.2007). Under this standard, “to establish willful infringement, a patentee must show by clear and convincing evidence that the infringer acted despite an objectively high likelihood that its actions constituted infringement of a valid patent.” Id. If this threshold showing is made, “the patentee must also demonstrate that this objectively-defined risk (determined by the record developed in the infringement proceeding) was either known or so obvious that it should have been known to the accused infringer.” Id. This “objective recklessness” standard represented a marked departure from the traditional standard, which imposed an affirmative duty of care on potential infringers to determine whether their conduct was infringing if they had notice of another party’s patent rights. Contra Underwater Devices Inc. v. Morrison-Knudsen Co., 717 F.2d 1380, 1389-1390 (Fed.Cir.1983).

In Read Corp. v. Portec, Inc.,

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707 F. Supp. 2d 737, 2010 U.S. Dist. LEXIS 36129, 2010 WL 1416688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saint-gobain-autover-usa-inc-v-xinyi-glass-north-america-inc-ohnd-2010.