Case Cite

Syntrix Biosystems, Inc. v. Illumina, Inc., No. 3:10-cv-05870, slip op. (W.D. Wash. June 18, 2013).

IPDQ Commentary

The court in Syntrix Biosystems referred to, but did not rely upon, the Read v. Portec factors before deciding a higher ongoing royalty rate was merited because of the rapidity and decisiveness of the jury’s verdict.

Case Summary

After a jury returned a verdict in its favor awarding 6% royalties for past infringement, Plaintiff filed a motion seeking ongoing royalties of 9%. Id. slip op. at 1-2. The court awarded 8% based on the following observations:

  • Plaintiff failed to show the Read v. Portec factors weighed in favor of a higher rate. Id. slip op. at 3.
  • However, Plaintiff showed the parties’ relative bargaining positions had changed post-verdict. Id. Plaintiff was in a stronger position in light of the evidence offered at trial, and the jury reached its “decisive” verdict in only 2.5 hours after an 11-day trial. Id. The court was not persuaded by Defendant’s argument that the close questions of law meant the status of the parties had not changed. Id.

The court agreed with the Defendant royalties should be based on shipments and not orders. Id.