Juicy Whip, Inc. v. Orange Bang, Inc.

United States Court of Appeals for the Federal Circuit · 2004 · Property

Propertypatentdamageslost profitsreasonable royaltyenhanced damagesattorney feesremand

Facts

The provided text is an erratum to the court's precedential opinion and contains only the corrected conclusion. It indicates that the district court had denied enhanced damages and attorney fees and had determined reasonable royalty damages. The appellate court directed that Juicy Whip be permitted to attempt to prove lost profits damages in excess of the reasonable royalty damages already determined. If Juicy Whip fails to do so on remand, the previously determined reasonable royalty damages are to be reinstated.

Issue

Whether the district court's denial of enhanced damages and attorney fees should be upheld, and whether the damages award should stand or be vacated to allow Juicy Whip an opportunity to prove lost profits damages exceeding the reasonable royalty damages already determined.

Rule

When reasonable royalty damages have already been determined, an appellate court may vacate the damages award and remand to permit the plaintiff to attempt to prove lost profits damages in excess of that reasonable royalty amount; if the plaintiff fails to make that showing, the previously determined reasonable royalty damages should be reinstated. The denial of enhanced damages and attorney fees may be affirmed separately.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

Maple Circuit Tools sued Harbor Peak Manufacturing in federal court in Cleveland for patent infringement. The district court denied Maple's requests for enhanced damages and attorney fees, and awarded a reasonable royalty of $400,000, but the court of appeals concludes Maple should be allowed to try to prove higher lost profits.

Which appellate disposition is most consistent with the governing rule?

Explanation. The majority disposition permits separate treatment of different remedies. Denials of enhanced damages and attorney fees may be affirmed, while the damages award is vacated and remanded so the plaintiff may attempt to prove lost profits in excess of the reasonable royalty already determined. If that effort fails, the previously determined reasonable royalty is reinstated. (Derived from Juicy Whip, Inc. v. Orange Bang, Inc. (n.d.).)