Judge Doubles Royalty Rate for Monitors over Comment Made to Press

October 5, 2011

October 5, 2011- A Texas judge has doubled the royalty rate to be paid by Chimei-InnoLux to Mondis Technology for monitors.  According to the September 30th order by Judge T. John Ward on the amount of the royalty rate, ”In addition, because the paramount determination is the egregiousness of InnoLux’s conduct, the Court considers InnoLux’s corporate attitude, which is reflected by its CEO’s statement to a Chinese newspaper after the verdict in this case, which reads in part: ‘The issue of patent infringement is being taken too seriously sometimes.’ (See “Chimei to Postpone Chinese Fab Investment,” The China Post, June 29, 2011, at 5.) The Court finds that this statement by InnoLux’s CEO shows InnoLux’s lack of respect for this Court and the jury’s verdict. It is also an affront to the United States patent system—a system of Constitutional origin. The Court, therefore, finds that this also warrants a strong enhancement because it further reflects the egregiousness of InnoLux’s conduct. In accordance, the Court holds that the earlier calculated reasonable royalty rate of 0.75% should be doubled to account for enhancement due to willfulness. This enhancement reflects the egregiousness of InnoLux’s continued infringement while also considering that it could be worse, for example, if there was evidence that InnoLux had copied or if InnoLux was a competitor and was seeking to harm Mondis. As a result, the ongoing royalty rate for monitors is set at 1.50%.”  In June 2011, a Texas jury found that Chimei-InnoLux monitors and televisions infringed claims of three patents asserted by Mondis.

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