Negotiations in the United States Not Enough for Infringement Suit

Maier_03In Halo Electronics, Inc. v. Pulse Electronics, Inc. 13-1472 (10/22/2014), the Federal Circuit upheld a district court summary judgment that Pulse Electronics could not infringe Halo Electronics’ patents because Pulse manufactured, shipped, and delivered their products abroad.  Pulse conducted negotiations and pricing discussions concerning the sales in the United States, but the district court found that those discussions alone were not enough to amount to a sale in the United States.  The Federal Circuit also upheld the lower court finding that Pulse’s infringement based on products that were sold in the U.S. did not amount to willful infringement.

Perhaps most notably, Judges O’Malley and Hughes concurred in the holding, but called for the full court to review the standard for imposing enhanced damages.  The call for review indicates that the Supreme Court’s recent decisions regarding the award of attorneys’ fees in Highmark and Octane Fitness.  The Federal Circuit’s test for enhanced damages due to willful infringement mirrored the test for awarding attorneys’ fees that was overruled by the Supreme Court in Octane Fitness.

source: Maier & Maier, PLLC
345 South Patrick Street
Alexandria, VA 22314
www.maierandmaier.com

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