Schneider to pay Server Technology 15% on Sales of Infringing PDUs

April 02, 2015 by Jeff Shepard

This week, the United States District Court for the District of Nevada ruled in favor of Server Technology Incorporated and awarded a post-judgment compulsory license of 15%, supplemental damages, and prejudgment interest against the defendant American Power Conversion Corporation (APC), a division of Schneider Electric of France. The Court ordered APC to pay Server Technology a 15% royalty on future sales of its infringing AP7900 series and AP8900 series vertical, switched power distribution units (PDUs).

This order of the Court follows the May 29, 2014 jury verdict that awarded Server Technology damages totaling $10,787,634 for patent infringement by American Power Conversion Corporation for pre-trial sales of infringing products by APC. Neither Schneider Electric nor APC was available for comment prior to the publication deadline.

The litigation was brought by Server Technology against APC in December 2006 for patent infringement of US Patent No. 7,043,543 (Vertical-Mount Electrical Power Distribution Plugstrip). Subsequently, US Patent No. 7,702,771 (Electrical Power Distribution Device Having A Current Display) was added to the litigation. Both patents were found to be valid and infringed by APC's products.

Brandon Ewing, the President and CEO of Server Technology stated: "I am gratified by the final ruling of the Court. These patents were the vision of Carrel Ewing, the founder of Server Technology. The Court's order recognizes the validity of the asserted patent and is further evidence of the innovation and creativity of Server Technology in the market. With our ever-expanding patent portfolio we will continue to offer leading innovations and solutions to our customers and to the market as a whole."