Jury's Royalty Rate Quadrupled After Judgment in Eastern District of Texas Patent Case

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Judge Folsom of the Eastern District of Texas has just published the latest chapter in the story of post-judgment remedies in patent cases, after the Supreme Court decision in eBay, Inc. v. MercExchange, LLC, 126 S. Ct. 1837 (2006). In an opinion that is likely to garner much attention, the court awarded post-judgment damages using a royalty rate that was nearly quadruple that awarded by the jury for past damages ($98 per vehicle sold versus $25). Paice LLC v. Toyota Motor Corp., No. 2:04-CV-211 (E.D. Tex. April 17, 2009). Several factors may make this case factually unique, and the decision has not been subject to review by the Federal Circuit, but the significantly increased royalty rate awarded post-judgment will certainly make many in the IP world stand up and take notice.

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