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Orion II: Summary Judgment of Infringement as to Hyundai's Redesigned Websites

By Michael C. Smith

Hyundai Motor America v. Clear With Computers, LLC, No. 6:08cv00302 (E.D. Tex., Aug. 24, 2009)
Holding: Motion for Summary Judgment on Noninfringement DENIED; Infringement GRANTED
Judge: Leonard Davis   

This case arises out of the Orion IP, LLC v. Mercedes-Benz USA, LLC, et al., 6:05cv322 litigation.  Orion settled with all defendants except Hyundai prior to trial. At trial, Hyundai alleged it did not infringe the patents and the patents were invalid. The he jury found Hyundai infringed the ?627 patent, its infringement of the patent was willful, the ?627 patent was not invalid, and Hyundai did not infringe the ?342 patent. The jury awarded Orion $34 million in damages for Hyundai?s infringement of the ?627 patent. The Court entered final judgment on the verdict and awarded Orion an ongoing royalty for Hyundai?s continued infringement.

Hyundai now claimed that it had redesigned its websites so that they no longer infringed, and filed this declaratory judgment action.  The plaintiff formerly known as Orion counterclaimed that you can put lipstick on a pig, but what you're doing with it is still illegal (at least in most states).  Judge Davis noted that the issues were before him on cross-motions for summary judgment and that the parties did not have any factual disputes as to how the changes have affected the websites.  Accordingly, after reviewing the applicable facts, he found that the accused websites were still infringing the patents, and according denied Hyundai's motion and granted CWC's. 

Full post as published by Eastern District of Texas Federal Court Practice on August 31, 2009 (boomark / email).