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Shockley v. Arcan, Inc.

Summary judgment in favor of plaintiff, upholding the validity of his patent, affirmed based on the new rule for reissue patents; court's denial of absolute intervening rights affirmed because such rights only apply to existing products; because lost profit award was speculative and against the great weight of the evidence, plaintiff must either take a reduced amount in damages or agree to a new damages trial.

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Appealed from: United States District Court for the District of South Carolina

Magistrate Judge William M. Catoe, Jr.

On a motion for summary judgment, the United States District Court for the District of South Carolina upheld the validity of Mr. Shockley’s U.S. Patent No. Re. 35,732 (the ’732 reissue). Before trial, Arcan, Inc., Telesis Corporation, and Sunex International, Inc. (collectively defendants) conceded that their accused devices contained all limitations of at least one of the asserted claims of the ’732 reissue. After a jury trial, the district court awarded Mr. Shockley and Excalibur Tool & Equipment Co., Inc. (collectively plaintiffs) lost profit damages totaling $3,791,070, of which $3,000,000 was future lost profits. The district court denied defendants’ motion to remit the damage award. The district court also denied defendants’ motion for a new trial on damages.

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