Enplas Display Device Corp. v. Seoul Semiconductor Co. (Fed. Cir. 2018) On November 19, 2018, the Federal Circuit vacated a jury’s four million dollar award of damages for induced infringement in favor of Seoul Semiconductor Co (SSC). SSC and Enplas collaborated to make lenses for “light bars,” which are used in backlighting displays in flat-screen televisions for SSC and agreed that the end product would be covered by SSC’s patents. Enplas later provided the lenses to SSC’s competitors, such as Samsung and LG, who utilized the lenses in their televisions sold in the United States. The jury found induced infringement because Enplas had knowledge of the sales in the US and provided specifications to US manufacturers of implementing products. However, the court found that the jury’s award of damages was in error. In particular, the jury relied on SSC’s damages expert who opined that Enplas would have agreed to a lump sum royalty of a hypothetical negotiation in which she used the volume of sales for Enplas’s units that exceeded the specific products of the case. Thus, the court found that the damages were calculated by applying a royalty to sales of non-accused lenses and remanded for further review. In a concurring opinion, Judge Newman pointed out that jury verdicts are reviewed for whether they are supported by substantial evidence, which was met here, especially when Enplas did not even object to the damages calculation by SSC’s expert.
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