In Halo Electronics, Inc. v. Pulse Electronics, Inc., the Supreme Court issued a longawaited opinion dramatically altering the standard Federal Courts use for determining whether to increase patent infringement damages under 35 U.S.C. § 284, which permits a Court to “increase the damages up to three times the amount found or assessed.” The focus is to be on the subjective conduct of the accused infringer, not an after-the-fact litigation-based objective view of the merits of the defense. A plaintiff can prove its entitlement to enhanced damages by a preponderance, instead of by clear and convincing evidence. The decision will impact alleged infringers’ pre-suit considerations to memorialize their good faith defenses to a patent, possibly encouraging more patent opinions in many situations.
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