I just came across Waters Corp. et Waters SAS
v. Hewlett-Packard GmbH et Agilent Technologies Deutschland GmbH, Cour
d'appel de Paris, Oct. 5, 2011, PIBD No. 954, III, 56. The patent in suit
was the French portion of EP No. 0 309 596, titled "Dispositif de pompage
pour délivrer un liquide à haute pression" (which I would translate as
"pumping device for delivering a liquid at high
pressure"). There is a more detailed write-up from Véron & Associés
here, along with links to the case in French and English, which appeared shortly after the case was handed
down, but here is my somewhat briefer summary.
The case seems reasonably straightforward to me in
its analysis of lost profits and reasonable royalties under French law, a topic
I discuss in my book at pages 264-66, 269-70. As for lost profits, the
court first determines the masse contrefaisante, that is, the number of
infringing sales multiplied by
the sales price. It then estimates how many of these sales the plaintiff would have made and multiplies
that figure by its estimate of the plaintiff's relevant profit margin.
The case presented a few wrinkles, though. First, the defendants argued
that the plaintiff Agilent Deutschland (which succeeded to the interest of its assignor, Hewlett-Packard Deutschland, which had settled) wasn't entitled to any lost profits
because it didn't exploit the patent in France. The court rejected this
argument, because the German company made sales in France through an affiliated
French concern from 2000 to 2002. Second, the plaintiff was entitled to
lost profits on certain accessories and replacement parts, based on an estimate of
customer carryover rates (taux de report). Third, the plaintiff was entitled to a
reasonable royalty for infringing sales it couldn't show that it would have
made in France from 1997 to 2002; in this regard, the court accepted an expert's proposal of a 12% royalty rate. The court
also affirmed "springboard damages" (l'effect
tremplin) in the amount of €100,000,
based on the benefit the defendants would have enjoyed after the period of
infringement due to, e.g., repeat business.
One interesting defense argument the court
rejected was based on article L613-9 of the French IP Code. In English
translation, this reads:
To have effect against others, all acts assigning or modifying rights deriving from a patent application or a patent must be entered in a register, known as the National Patent Register, kept by the National Institute of Industrial Property.
However, an act may have effect, prior to entry, against parties who have acquired rights after the date of such act, but who had knowledge of the act when acquiring the rights.
In the present case, Hewlett-Packard had
assigned the patent to Agilent on October 29, 1999, but the assignment wasn't
recorded until August 21, 2000. The defendants argued that they weren't
liable for damages for that interim period of time, but the court rejected this
argument on the ground that the article isn't intended to immunize infringing
acts committed during the period of time before the assignment is
recorded. That seems to make sense. Though I haven't researched the
issue--and according to the Véron & Associés write-up, there was case law supporting the position the court rejected--I would assume that article L613-9 is intended to protect good faith
purchasers of patent rights, somewhat akin to U.S. Patent Act section 261,
which in relevant part reads "An assignment, grant, or conveyance shall be
void as against any subsequent purchaser or mortgagee for a valuable
consideration, without notice, unless it is recorded in the Patent and
Trademark Office within three months from its date or prior to the date of such
subsequent purchase or mortgage."
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