Godo Kaisha IP Bridge 1 v. TCL Communication was decided on August 4, 2020, on appeal from the District of Delaware. At trial, Plaintiff IP Bridge argued that the asserted patents are essential to a standard and that Defendant TCL’s accused devices are compatible with the standard. The jury found that TCL was liable for infringement by sale of its standard-compliant devices and awarded IP Bridge $950,000 in damages. The district court then denied TCL’s motion for JMOL of non-infringement. The district court awarded IP Bridge supplemental damages through the date of the verdict, and awarded ongoing royalties applied to “both the adjudicated products and certain unadjudicated products.” TCL appealed.
The Federal Circuit affirmed the judgment of infringement and the ongoing royalty award.
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The district court did not abuse its discretion in awarding ongoing royalties in this case. The district court “found that the jury’s award represented a FRAND royalty rate of $0.04 per patent per infringing product and awarded on-going royalties in that amount for both the adjudicated products and certain unadjudicated products.” The district court reasoned that, because IP Bridge showed at trial that the standard-compliant devices do not operate on the network without infringing the asserted claims, “the unaccused, unadjudicated products are not colorably different than the accused products.”