Tech Governance

Supreme Court Takes Up Key Patent Damages Cases on Willfulness

  • The U.S. Supreme Court agreed to hear:

    • Stryker Corp. v. Zimmer Inc.

    • Halo Elecs., Inc. v. Pulse Elecs., Inc.

  • Both cases address the legal standard for willful patent infringement.


Why Willfulness Matters

  • Willful infringement occurs when:

    • An infringer acts deliberately with knowledge of the patent.

  • Under 35 U.S.C. § 284:

    • Courts may award treble (triple) damages.

  • Federal Circuit’s test (from In re Seagate):

    1. Objective prong – “Objectively high likelihood” of infringement.

    2. Subjective prong – Infringer was aware of the risk.

  • Supreme Court review could:

    • Relax this standard.

    • Increase risk of enhanced damages for accused infringers.


Stryker Corp. v. Zimmer Inc.

  • Technology: Portable pulsed lavage devices (used in orthopedic surgery).

  • District Court (W.D. Mich.):

    • Jury found willful infringement.

    • Awarded $70 million.

    • Court trebled damages to $210 million.

  • Federal Circuit (2014):

    • Reversed willfulness finding.

    • Held Zimmer’s defenses were not objectively unreasonable.

  • Stryker argued:

    • The Seagate test is too rigid.

    • Cited Supreme Court’s decision in Octane Fitness (which relaxed fee-shifting standards).

  • Supreme Court granted review.


Halo Elecs., Inc. v. Pulse Elecs., Inc.

  • Technology: Surface mount electronic packages for circuit boards.

  • District Court (D. Nev.):

    • Jury awarded $1.5 million to Halo.

    • Court found no willful infringement.

  • Federal Circuit:

    • Affirmed.

    • Held Pulse’s obviousness defense was not objectively unreasonable.

  • Halo petitioned Supreme Court:

    • Argued Seagate test is overly rigid.

  • Supreme Court:

    • Granted certiorari.

    • Consolidated with Stryker case.


Key Issue Before the Court

  • Whether the Federal Circuit’s two-part Seagate test:

    • Is too strict.

    • Should be relaxed, similar to the standard modified in Octane Fitness.

  • Potential Impact:

    • Greater exposure to treble damages.

    • Significant consequences for accused infringers.

  • The legal standard for willfulness is under active reconsideration.

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