Recent Legal Victories

Koninklijke Philips Electronics N.V. v. KXD Technology, Inc., et al.

Case No. CV 05-1532 RLH (GWF) (D. Nev. 2007)

On behalf of Koninklijke Philips Electronics N.V. (Royal Philips Electronics), we filed a lawsuit against 24 U. S. and China companies and individuals for trademark infringement based on their manufacture, advertising, distribution and sale of DVD recorders bearing infringements of Philips' registered DVD+Rewritable & Design trademark. We successfully obtained a seizure order from the federal court and the United States Marshals Service and local law enforcement officers seized thousands of pieces of infringing product and nearly one million pages of electronic and physical documents at the Consumer Electronics Show and warehouses.

Based on our decades of experience in intellectual property litigation, we sought and obtained significant orders from the Court that assisted Philips in the enforcement of its intellectual property rights and recovery of damages:

• Incarceration For Failure to Pay Contempt Sanctions
  The Court ordered that one of the defendants be incarcerated until he pays the contempt sanctions or proves that he is unable to tender payment.
• Contempt Sanctions and Fees Over $3.5 Million Awarded Against KXD
  The Court awarded Philips over $3.5 million, and ordered the defendants to post a $2,000,000 bond and submit to audits in China and the United States. The order allowed Philips to conduct unannounced inspections of the defendants' facilities and factories.
• Assignment of KXD's Accounts Receivables to Philips
  We were successful in obtaining unique relief in the way of the Court ordering that the defendants' account debtors such as Target pay Philips, instead of KXD, to satisfy the sanctions.
• Repatriation of All Funds Transferred by KXD Overseas During the Lawsuit
  To assist Philips in recovering the contempt sanctions, the Court ordered the defendants to repatriate millions of dollars they had transferred out of the United States and to deposit those funds into a bank within the Central District of California.
• Freezing KXD's Assets
  The Court granted Philips' request to freeze all of the defendants' assets, including all real property and bank accounts.
• Impoundment of KXD's Inventory
  Local law enforcement, with our assistance, were permitted to search for, record and impound the defendants' entire inventory which was valued at over $10,000,000.
• Certification of Contempt Sanctions for Enforcement in All Jurisdictions
  The Court granted Philips' request to certify and register for execution the order for civil contempt sanctions for enforcement in all U.S. jurisdictions.

U.S. Philips Corporation v. KXD Technology, Inc., et al.

Case No. CV 05-8953 ER (PLAx) (C.D. Cal. 2007)

Swinging a heavy hammer, a federal judge has stricken answers filed by numerous companies accused of patent infringement and entered default judgments against the defendants based on "a pattern of utter disregard for the rules of procedure and discovery."
(Central District Almanac, Volume XVII, No.09 August 6, 2007.)

On behalf of U.S. Philips Corporation, we filed a lawsuit against the defendants for patent infringement based on their unauthorized sale and distribution of DVD players incorporating Philips' patented technology. We were successful in Philips avoiding a costly trial by obtaining the day before trial an order striking the defendants' answer and entering their default.

As a result of our efforts, Philips obtained the following significant judgment and orders from the Court that assisted Philips in the enforcement of its intellectual property rights and preservation of assets to satisfy damages:

• $93 Million Final Judgment Award
  The Court entered default judgment against defendants and awarded Philips more than $93 million for compensatory damages and prejudgment interest and enjoined the defendants from infringing Philips' patents.
• $80 Million Bond
  The Court ordered defendants to post an $80 million prejudgment bond to secure the payment of a judgment award.
• Freezing of KXD's Assets
  The Court granted Philips' request to freeze all of the defendants' assets, including any real property and bank accounts located in the United States.
• Striking of KXD's Answers and Counterclaims
  In weighing the evidence and behavior of the parties, the Court granted Philips' request to strike the defendants' answers and enter default.
• Evidentiary Sanctions
  The magistrate judge recommended the imposition of severe evidentiary sanctions against the defendants, precluding them from introducing any evidence at trial related to their defenses of non-infringement or any evidence to contradict Philips' damages expert.

U.S. Philips Corporation v. International Norcent Technology, et al.,

Case No. CV 06-01366 ER (PLAx) (C.D. Cal. 2007)

In a patent infringement action brought on behalf of U.S. Philips Corporation against several U.S. and Chinese companies, the jury issued a resounding verdict finding that the U.S. defendants had willfully infringed those patents and awarding Philips more than $12.8 million in compensatory damages. Philips is seeking enhanced damages and attorneys' fees in addition to the jury verdict.

• $12.8 Million Final Judgment
  The Court entered final judgment based on the jury verdict and maintained jurisdiction to consider Philips' request for enhanced damages and attorneys' fees.
• Philips' DVD Player Patents Valid
  The jury found that Philips' patents were not invalid.