Halo v. Pulse was decided by the Federal Circuit on August 5, 2016 on appeal from the District of Nevada, on remand from the Supreme Court. There, a jury found that defendant Pulse had infringed plaintiff Halo’s patent, and that the infringement was probably willful. Applying the then-standard Seagate, the district court declined to enhance damages under § 284, after determining that Pulse presented a defense that was not objectively baseless or a sham (the objective-recklessness prong of Seagate wasn’t met). The Federal Circuit affirmed. The Supreme Court vacated and remanded, establishing a new willfulness standard. The case was on remand in the Federal Circuit.
In light of the Supreme Court’s decision, the Federal Circuit vacated the district court’s refusal to enhance damages under § 284.
The district court based its decision on Pulse’s defense at trial (the defense was not objective baseless). Because a cogent defense at trial cannot shield an infringer from a willfulness finding under Halo, and because the jury found subjective willfulness, the district court will use its discretion on remand, and decide whether an enhancement of damages is warranted. Culpability “is generally measured against the knowledge of the actor at the time of the challenged conduct.” In making the decision, the district court should consider, among other factors, “what Pulse knew or had reason to know at the time of the infringement.”
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