Home -> Law Blog Directory -> Federal Judiciary Blogs -> Eastern District of Texas Federal Court Practice

Federal Judiciary

: Eastern District of Texas Federal Court Practice

Postverdict motions resolved in i4i v. Microsoft

By Michael C. Smith

i4i Ltd. Partnership v. Microsoft Corp., 2009 WL 2449024(E.D.Tex. Aug 11, 2009) (NO. 6:07CV113)
Judge: Leonard Davis

This is the case in which a Tyler jury rendered a verdict against Microsoft of $200,000 in May of this year.  In this opinion, released earlier this week, Judge Davis addressed numerous postverdict motions.  By party, they are: Microsoft's motions for judgment as a matter of law regarding willful infringement, indirect infringement, noninfringment, invalidity, anticipation and obviousness, for remittitur regarding damages, and to stay injunctive relief.  On the plaintiff's side, the motion addressed the plaintiff's motion for enhanced damages and attorneys' fees, motion for a permanent injunction, and motion for post-verdict damages, prejudgment interest, and post-judgment interest.

For the reasons set forth in this exhaustive 37 page opinion, Judge Davis granted i4i's motion for enhanced damages and attorneys' fees in part, granted i4i's motion for permanent injunction and i4i's motion for post verdict damages, prejudgment interest, and post-judgment interest, and denied all the other motions.  The opinion also included the Court's findings of fact and conclusions of law regarding Microsoft's equitable defenses of laches and inequitable conduct.  On the enhancement, while it could have been up to three times the $200 million verdict, Judge Davis enhanced only $40 million, despite finding that Microsoft's trial counsel's arguments at trial constituted misconduct which was "persistent, legally improper, and in direct violation of the Court's instructions."  Judge Davis specifically declined to find the case "exceptional" due to the litigation misconduct, contrasting it to his prior experience in z4 Techs., Inc. v. Microsoft Corp., No. 6:06-cv-142, 2006 WL 2401099 at *22-25 (E.D.Tex.2006) (Davis, J.) in which he concluded that attorneys' fees were properly awarded where Microsoft withheld critical evidence, misled the Court regarding facts probative to the admissibility of certain evidence, and marked nearly 3500 exhibits while only admitting 100 of those at trial. In this case, the relatively lower level of misconduct, "combined with a lack of evidence that Microsoft intentionally copied i4i's patent or products and i4i's lengthy delay prior to filing suit preclude an ?exceptional? finding in this case."

As numerous media have commented, Judge Davis granted an injunction in this case, enjoining the sale of Microsoft Word following the date of the injunction, after applying the four factor test provided for in eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388, 394 (2006), and finding that all four factors favored an injunction.  He declined to stay the injunction.

Full post as published by Eastern District of Texas Federal Court Practice on August 14, 2009 (boomark / email).