Supreme Court affirms a judge's right to set damage amounts in patent cases

WASHINGTON, June 13 (UPI) -- A Supreme Court ruling Monday will make it easier for patent holders to win increased financial damages from those who use their inventions without approval.

The unanimous ruling, in two consolidated cases, sided with two companies that argued that competitors willfully copied their products.

In a 32-page opinion written by Chief Justice John Roberts, the court overturned a lower court ruling that set a high threshold for winning punitive damages in patent infringement cases. Roberts wrote that the lower court's standard was unnecessarily rigid, effectively protecting some companies from punishment.

Federal judges have leeway to allow damages equal to three times that of actual damages.

In one of the combined cases, Stryker Corp., a medical device manufacturer, was awarded $70 million by jurors after it proved Zimmer Biomet Holdings Inc. willfully infringed on Stryker patents. A judge tripled the damages, but Stryker lost the increased award in the U.S. Court of Appeals, which ruled Zimmer's defense had some legal basis. The Supreme Court ruled that the appeals court decision was incorrect.

The second case involved computer parts manufacturer Halo Electronics Inc. and its $1.5 million in infringement damages from Pulse Electronics Corp. Halo failed to persuade the appeals court that enhanced damages were merited.

Roberts' opinion affirmed a judge's option to rule on appropriate damages, including punitive damages.