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Case of the Month November 2022

Federal Jury Awards Plaintiff $106.3M in Trade Dress, Patent Infringement Suit

Raffel Systems L.L.C. v. Man Wah Holdings Ltd. et al.

Case Type:
Intellectual Property - Trademark/Trade Name
Intellectual Property - Patent
Unfair Competition & Business Practices - Other

Specific Liability:
Electronics company asserted other companies infringed upon their trade dress and patent for integrated cup holder products

General Injury:
Monetary damages

Jurisdiction:
State: Wisconsin
United States District Court, E.D. Wisconsin.

Related Court Documents:
Plaintiff's amended complaint: 2019 WL 1473009
Defendants' pretrial report: 2022 WL 2990955
Plaintiff's final pretrial report: 2022 WL 2990948
Special verdict form 2022 WL 2990850

Case Name:
Raffel Sys. L.L.C. v. Man Wah Holdings Ltd., et al.

Docket/File Number:
2:18CV01765

Result Amount:
$106,267,317

Result Date:
June 17, 2022

Judge:
Nancy Joseph

Attorneys:
Plaintiff: John C. Scheller, Michael Best & Friedrich L.L.P., Madison, WI; Shane A. Brunner, Michael Best & Friedrich L.L.P., Madison, WI; Tanya M. Salman, Michael Best & Friedrich L.L.P., Madison, WI; Michelle L. Dama, Michael Best & Friedrich L.L.P., Madison, WI; Kenneth M. Albridge III, Michael Best & Friedrich L.L.P., Madison, WI; Nancy Cruz, Michael Best & Friedrich L.L.P., Madison, WI; J. Donald Best, Michael Best & Friedrich L.L.P., Madison, WI; Melanie J. Reichenberger, Michael Best & Friedrich L.L.P., Milwaukee, WI; Brianna Siebken, Michael Best & Friedrich L.L.P., Chicago, IL; J. Ryan Gray, Michael Best & Friedrich L.L.P., Raleigh, NC; Tyler J. Sisk, Casimir Jones S.C., Middleton, WI; David A. Casimir, Casimir Jones S.C., Middleton, WI; Joseph T. Leone, DeWitt L.L.P., Madison, WI; Lanny J. Davis, Davis Goldberg Galper P.L.L.C., Washington, DC

Defendants: Gary M. Hnath, Mayer Brown L.L.P., Washington, DC; Michael L. Lindinger, Mayer Brown L.L.P., Washington, DC; Clark S. Bakewell, Mayer Brown L.L.P., Washington, DC; Hao Tan, Arch & Lake L.L.P., Chicago, IL; Shen Wang, Arch & Lake L.L.P., Chicago, IL; Jennifer L. Gregor, Godfrey & Kahn S.C., Madison, WI; Matthew M. Wuest, Godfrey & Kahn S.C., Milwaukee, WI; Gary M. Rubman, Covington & Burling L.L.P., Washington, DC; Richard L. Rainey, Covington & Burling L.L.P., Washington, DC

Result Type:
Jury

Experts:
Plaintiff: Richard Conroy, M.B.A., Intellectual Property Damages, Chicago, IL; Ronald Kemnitzer, Design Patent and Trade Dress Law, Virginia Polytechnic Institute and State University, Roanoke, VA

Defendants: Steven Ricca, P.E., Electrical Engineer, Columbus, OH; Charles Vranian, Business Development, Vranian Business Development L.L.C., Grand Rapids, MI; Thomas Varner, Ph.D., Engineering Economic Consultant, San Francisco, CA

Breakdown of Award:
$1,181,617 to plaintiff for damages associated with trade dress infringement
$5,800,000 to plaintiff for loss of profits associated with trade dress infringement
$1,000,000 to plaintiff for damages related to trade dress misappropriation
$97,500,000 to plaintiff for punitive damages related to trade dress misappropriation
$425,300 to plaintiff, using a stipulated reasonable royalty rate, for the defendants' patent infringement
$360,400 to plaintiff for damages associated with the defendants' false patent marking

Summary of Facts:
Plaintiff Raffel Systems L.L.C., an electronics company that designed and manufactured electronic controls and appliances, asserted it developed, manufactured and sold theater and integrated cup holder (ICH) products. The plaintiff claimed through continuous advertising and marketing, its ICH product designs were not merely functional but were distinctive to consumers who associated the quality of its ICH products with the plaintiff.

The plaintiff asserted defendants Man Wah Holdings Ltd. and Man Wah (USA) Inc. manufactured, sold and/or distributed cup holder products and/or theater seating arrangements containing cup holders that were falsely marked as manufactured by or licensed from the plaintiff.

The plaintiff contended the defendants created a likelihood of confusion in the marketplace through their false marking, and claimed the defendants intended to deceive consumers into believing such ICH products were manufactured by the plaintiff.

The plaintiff also asserted the defendants infringed upon its patent, entitled Lighted Cup Holder for Seating Arrangements, protected by U.S. Patent Number 7,766,293 (referred to as the 293 patent) by manufacturing and selling products that infringed upon its 293 patent claims. The plaintiff further contended the defendants falsely marked their cup holder products with stickers and/or labels bearing the plaintiff's 293 patent number.

The plaintiff asserted claims for trade dress infringement, misappropriation, patent infringement and false patent marking. The plaintiff sought actual damages, which included lost profits and loss of goodwill, enhanced damages and punitive damages, as well as reasonable royalty damages for the defendants' alleged patent infringement, together with attorney fees and costs.

The defendants denied liability and argued the plaintiff's alleged trade dress was merely functional and was therefore not protectable. The defendants also denied the plaintiff's alleged trade dress in its black ICH cup holder design was distinctive and denied consumers would be confused by the defendants' sale of furniture with black cup holders.

The defendants also asserted the plaintiff's 293 patent claim was invalid as obvious and denied they intended to deceive the public through alleged false patent marking. The defendants also disputed the nature and extent of the plaintiff's claimed damages.

United States District Court, E.D. Wisconsin.

Westlaw Citation:
2022 WL 4463662