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Keywords

plaintiffwillpatentlegal counsel
tortplaintiffdefendantwillpatent

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Al-Site Corp. v. VSI International Inc., Not Reported in F.Supp.2d, 1999 WL 33451705, 60 U.S.P.Q.2d 1923

Facts

The case involves a dispute over allegations of willful patent infringement by VSI International, Inc. (VSI) against Al-Site Corp. and Magnivision, Inc. The Federal Circuit previously ruled that VSI's chairman, Myron Orlinsky, was not personally liable for the infringement. The court found that Orlinsky acted within his authority as CEO and sought legal counsel before continuing production of the disputed products. The plaintiffs claimed that VSI's actions constituted willful infringement despite the legal advice received.

The record shows that Myron Orlinsky made the sole decision to continue using the hanger tags after VSI received cease and desist letters from Magnivision.

Issue

Whether the plaintiffs' claim for willful infringement by VSI International, Inc. is barred by the law of the case established by the Federal Circuit.

Whether the ruling of the Federal Circuit in Al-Site Corp. v. VSI Int'l, Inc., 174 F.3d 1308 [50 USPQ2d 1161] (Fed. Cir. 1999) bars Plaintiffs Al-Site Corp. and Magnivision, Inc.'s claim for willful infringement by Defendant VSI International, Inc.

Rule

The law of the case doctrine dictates that once a legal issue has been decided, it should not be re-litigated in the same case. In the context of willful infringement, the court must assess the infringer's behavior against an objective standard of reasonable commercial behavior, considering factors such as the infringer's disregard for the patentee's rights and the deliberateness of the infringing acts.

The issue of 'willful' infringement measures the infringing behavior, in the circumstances in which the infringer acted, against an objective standard of reasonable commercial behavior in the same circumstances.

Analysis

The court analyzed the facts surrounding Orlinsky's actions and determined that he acted within the scope of his authority and sought legal advice, which informed his belief that there was no infringement. This conduct did not demonstrate the requisite disregard for the patent rights necessary to establish willful infringement. The court concluded that the previous findings by the Federal Circuit barred the plaintiffs' claim.

These findings are irreconcilable with the predicate required for a finding of willful infringement; i.e., disregard for the property rights of the patentee; deliberateness of the tortious acts; and other manifestations of unethical or injurious commercial conduct.

Conclusion

The court held that the plaintiffs' claim for willful infringement is barred by the law of the case established by the Federal Circuit.

ORDERED ADJUDGED AND DECLARED that Plaintiffs Al-Site Corp. and Magnivision, Inc.'s claim for willful infringement by Defendant VSI International, Inc. is barred by the law of the case.

Who won?

VSI International, Inc. prevailed in this case as the court ruled that the plaintiffs' claim for willful infringement was barred by the law of the case. The court found that Myron Orlinsky acted within his authority and sought legal counsel, which negated the claim of willfulness. The court emphasized that there was no evidence to suggest that Orlinsky's actions constituted knowing infringement, thus supporting VSI's position.

The Court finds no basis for altering its August 31, 1999 ruling that Plaintiffs Al-Site Corp. and Magnivision, Inc.'s claim for willful infringement by Defendant VSI International, Inc. is barred by the law of the case.

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