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Georgia-Pacific Corp. v. U.S. Plywood Corp., 318 F.Supp. 1116

Facts

This case involves a patent infringement dispute between Georgia-Pacific Corporation (GP) and United States Plywood Corporation (USP) regarding the patented striated fir plywood. The District Court had previously ruled that USP's patents were valid and infringed by GP. Following this, the case was referred to a special master to determine the damages owed to USP. The special master initially awarded damages based on GP's profits, but the District Court later concluded that a reasonable royalty should be the measure of damages, leading to the determination that $50 per thousand square feet was a fair royalty.

The District Court, Tenney, J., held that evidence established that $50 per thousand square feet of patented striated fir plywood made and sold by infringer represented fair and reasonable royalty that should be paid by infringer to patent holder.

Issue

What is the appropriate amount of reasonable royalty to be paid by the infringer to the patent holder for the use of the patented invention?

What is the appropriate amount of reasonable royalty to be paid by the infringer to the patent holder for the use of the patented invention?

Rule

Analysis

The court analyzed the evidence presented regarding the commercial success of the patented striated fir plywood and the lack of significant competition at the time of infringement. It considered the expectations of both parties during hypothetical negotiations, concluding that GP would have been willing to pay a reasonable royalty that would still allow for a profit. The court found that the factors supporting a higher royalty, such as the product's market position and the potential profits from collateral sales, outweighed any arguments for a lower rate.

Conclusion

The court held that a reasonable royalty of $50 per thousand square feet was appropriate for the infringement of the patent, reflecting the commercial success of the product and the circumstances of the infringement.

Evidence established that $50 per thousand square feet of patented striated fir plywood made and sold by infringer represented fair and reasonable royalty that should be paid by infringer to patent holder.

Who won?

United States Plywood Corporation prevailed in this case as the court determined that Georgia-Pacific Corporation owed a reasonable royalty for the infringement of its patent.

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