SynQor Prevails on Post-Judgment Motions In Multi-Party Case; Also Awarded New IBA Patent Which is Added to Lawsuit Against Vicor
SynQor, Inc. announced that late last week, in the matter SynQor, Inc. v. Artesyn Technologies, Inc., et al., Civil Action No. 2:07-CV-497-TJW-CE, the U.S. District Court for the Eastern District of Texas denied all of the defendants’ post-trial challenges to the jury verdict and the Court’s prior rulings.
In ruling for SynQor the Court stated:
"The Court has carefully considered the parties’ submissions, the record, and the applicable law. As discussed in the Court’s previous orders, the Court finds that the evidence in the record supports the jury’s findings with respect to the issues raised in the renewed JMOLs. The Court also finds that the verdict was not against the great weight of the evidence, the damages awarded were not excessive, the trial was fair, and no prejudicial error was committed. Defendants have offered no persuasive arguments for the Court to disregard the jury’s verdict or to award a new trial. The Court rejects Defendants’ arguments accordingly. These Motions, in their entirety, are DENIED. In addition, Defendants’ motions to set aside the Court’s finding of supplemental damages, civil contempt sanctions, and award of attorneys’ fees ... are DENIED."
In a separate Order the Court awarded SynQor $414,071 to be paid by the ’497 defendants for certain costs incurred by SynQor in conducting the patent infringement trial. This amount was awarded in addition to the more than $114M previously awarded to SynQor through the Final Judgment.
Finally, on its own motion the Court opened a new case and assigned to it SynQor’s continuing causes of action against the ’497 defendants for post-injunction damages. The Court authorized continuing discovery in that case and ordered the ’497 defendants to provide SynQor with updated sales data for each unregulated and semi-regulated bus converter sold worldwide for the period January 24, 2011 to September 30, 2011 and on a quarterly basis thereafter. SynQor’s Motion for Order Requiring Non-Party Cisco System, Inc. to Show Cause Why It Should Not Be Held In Contempt of the Permanent Injunction Entered by the Court was also transferred to the new case.
SynQor President and Chief Executive Officer, Dr. Martin F. Schlecht, commented: "We are very pleased with the Court’s latest rulings that validate the jury award in this case. The new case opened by the Court will allow SynQor to obtain compensation for additional infringements and to monitor potential violations of the Court’s Permanent Injunction Order which is now in full force and effect with no exceptions. We look forward to continuing to work with customers that wish to use highly efficient unregulated and semi-regulated bus converters free from any litigation risk, including the potential for damages and line down situations due to injunctive relief."
SynQor also announced the issuance of U.S. Patent No. 8,023,290 by the Patent and Trademark Office effective September 20, 2011. The ’290 patent is the latest in a series of patents issued to SynQor relating to Intermediate Bus Architecture and Bus Converters. Promptly following the issuance of the ’290 patent the U.S. District Court for the Eastern District of Texas granted SynQor’s request to add this patent to the pending patent infringement suit SynQor has against Vicor Corp. and Cisco Systems.
SynQor stated that customers that wish to use highly efficient unregulated and semi-regulated bus converters free from any litigation risk, including the potential for damages and line down situations due to injunctive relief, should contact the company.
Vicor responded to SynQor’s claims by announcing the filing of counterclaims against SynQor. In its counterclaims, Vicor seeks damages for alleged unfair and deceptive trade practices and tortious interference by SynQor in attempting to mislead customers and monopolize the IBA market with invalid claims.
Vicor regards SynQor’s October 4th press release announcing the recent issuance of U.S. Patent No. 8,023,290 as another example of SynQor’s attempt to illegitimately monopolize the IBA market. Prior to the issuance of SynQor’s "latest patent," SynQor had obtained three other, related patents, which it had asserted against Vicor in an attempt to claim ownership over IBA. However all of the asserted claims of those patents have been rejected as unpatentable by the U.S. Patent and Trademark Office ("PTO") upon reexamination. SynQor’s "new" ’290 patent, which is based on the same specification as SynQor’s now-rejected earlier patents, contains claims similar to those that now stand rejected. SynQor obtained the ’290 patent by failing to inform the patent examiner that the PTO’s Central Reexamination Unit ("CRU") had already rejected SynQor’s related claims in its earlier patents. As such, SynQor’s claims in "the latest patent" are invalid and unenforceable. On October 4th, following SynQor’s press release, Vicor filed counterclaims against SynQor, alleging SynQor obtained its new patent through inequitable conduct and also alleging unfair and deceptive trade practices and tortious interference in its relationship with a growing list of customers interested in Vicor’s superior Bus Converter products.
Commenting on the filing of counterclaims against SynQor, Dr. Patrizio Vinciarelli, Vicor’s Chief Executive Officer, stated, "It is unfortunate that SynQor, having failed in the marketplace with low density, inefficient square wave bus converters, has resorted to attacking customers with invalid Intellectual Property claims. As a company founded on innovation protected by IP, Vicor respects the legitimate IP interests of others. However, where, as here, illegitimate IP claims are being asserted inappropriately, Vicor intends to defeat such claims and hold SynQor accountable for the damages it has caused."
Dr. Vinciarelli added, "SynQor’s latest patent and press release reflect a desperate attempt to shore up its crumbling patent portfolio and thus maintain its grip on the IBA marketplace. However, senior examiners in the PTO’s CRU have unanimously concluded that SynQor did not invent IBA and has no legitimate claim to it, and Vicor is confident that SynQor’s latest patent will also be found invalid because of the same prior art that anticipates its prior patent claims. Customers are reaching the same conclusion and designing Vicor’s higher density and higher efficiency bus converters into their products."
