IP News

Judge Benjamin H. Settle in Seattle increased a jury award of $95 million to include prejudgment interest of $7 million, supplemental damages in the amount of $12 million, and an ongoing royalty rate of 8% per infringing sale. The case, Syntrix Biosystems, Inc. v. Illumina, Inc., No. 10-5870 (W.D. Wa), involves technology directed towards miniaturized ligand-arrays, which are used to perform genetic testing.

After a jury trial, Illumina was found to infringe several claims of Syntrix's patent directed towards increasing the density of these arrays. D.I. 285. The jury also found that Syntrix was entitled to a reasonable royalty of 6% for past infringement. Id. For continuing infringement, Syntrix sought an ongoing royalty rather than an injunction, and requested a 9% royalty rate instead of the 6% rate the jury found for past infringement. Judge Settle noted that the jury returned a complete verdict for Syntrix in only two and a half hours, and “based on this decisiveness and the evidence offered at trial, the Court finds that Syntrix is in a stronger bargaining position than it was prior to the verdict.” D.I. 355 at 4. Judge Settle found that a 2% increase in the ongoing royalty rate adequately compensated Syntrix for this stronger bargaining position. Id.

Howard J. Shire is a partner in the New York office of Kenyon & Kenyon LLP and the Editor-in-Chief of this newsletter. Joseph Mercadante is an associate at Kenyon & Kenyon.