Document: 461 U.S. 648 103 S.Ct. 2058 76 L.Ed.2d 211 GENERAL MOTORS CORPORATION, Petitioner,v.DEVEX CORPORATION et al. No. 81-1661. Argued Dec. 7, 1982. Decided May 24, 1983. Syllabus Prior to 1946 the section of patent laws governing recovery in infringement actions contained no reference interest. In was amended and now provides 35 U.S.C. § 284 that court shall award a successful claimant "damages adequate compensate for infringement, but event less than reasonable royalty use made invention by infringer, together with interest costs as fixed court." respondent Devex Corp.'s action against petitioner covering lubricating process used cold-forming metal car parts pressure, District Court entered judgment pursuant 284, awarding, addition royalties postjudgment interest, prejudgment After determining what annual payments would have been, calculated on each payment from time it become due. The Appeals affirmed. Held: proper this case. Pp. 641-657. (a) Section does not incorporate pre-1946 common-law standard enunciated Duplate Corp. v. Triplex Safety Glass Co., 298 448, 56 792, 80 L.Ed. 1274, under which could be awarded where damages were unliquidated absent bad faith or other exceptional circumstances. Rather, gives general authority fix authority, face is restricted 651-654. (b) Both background language provide evidence underlying purpose provision should ordinarily necessary afford plaintiff full compensation infringement. Consistent purpose, some justification withholding such an award. typical case ensure owner good position he been if infringer had into agreement. And received merely serves make whole, since his consist only value also forgone money between date judgment. 654-657. 667 F.2d 347 (3rd Cir., 1981), George E. Frost, Detroit, Mich., petitioner. Sidney Bender, Garden City, N.Y., respondents. Justice MARSHALL, delivered opinion Court. 1 This concerns suit 284. 2 * 1956 Corporation (Devex) filed General Motors (GMC) United States Northern Illinois.1 alleged GMC infringing Reissue Patent 24,017, known "Hendricks" "Devex" patent. covered pressure.2 On June 29, 1962, held invalid GMC. appeal Seventh Circuit reversed finding invalidity remanded further proceedings. Corp., 321 234 (CA7 1963), cert. denied, 375 971, 84 490, 11 418 (1964). 3 then transferred Delaware. trial ruled there 316 F.Supp. 1376 (D.Del.1970). Third reversed, holding infringed GMC's certain processes production bumpers cold-extruded non-bumper parts. 467 257 (1972), 411 973, 93 2145, 36 696 (1973). 4 remand referred Special Master accounting. three major divisions manufacture bumper parts, selected rate "by hypothetical negotiations" found taken place sought obtain license Devex. Master's Report at 71. See 347, 352 (CA3 1981).3 modified awarding $8,813,945.50 royalties, $11,022,854.97 post-judgment allowed State law. determined (1981). "the yearly became due abuse discretion." Id., 363. We granted certiorari consider applicable --- ----, 102 2267, 73 1283 (1982), we affirm. II 5 concerning plaintiff's interest.4 cases governed common law several decisions E.g., 1274 (1936); Tilghman Proctor, 125 136, 8 894, 31 664 (1888). Under standard, generally liquidated, absence liquidation "exceptional circumstances," part infringer. U.S., 459, S.Ct., 797.5 6 Congress adopted amendments actions. Act August 1, 1946, c. 726, 60 Stat. 778, (1946 ed.), §§ 67, 70.6 One provisions, has recodified states relevant part: 7 "Upon Courts reached differing conclusions whether incorporates more 284.7 9 little doubt standard. evolved matter federal law, By contrast, costs. court's circumstances, warrant imposing limitation. When wished limit element action, said so explicitly. With respect attorney's fees, expressly provided fees prevailing party "in cases." 285.8 power similarly restricted. 10 There basis inferring Congress' adoption incorporated reenacted statutory courts interpreted particular way. situation, may well appropriate infer intended adopt established judicial interpretation. See, e.g., Herman & MacLean Huddleston, 683, 689, 74 548 (1983); Lorillard Pons, 434 575, 580-581, 98 866, 870, 55 40 (1978). case, however, predecessor statute did contain any specifically added cannot agree significance express incorporation developed specific Having decided rule, turn consideration provision. Although supplies guidance reasons elaborated below are convinced strongly suggests 12 fundamental purpose. statute, recover both own infringer's profits. Aro Mfg. Co. Convertible Top 377 476, 505, 1526, 1542, 457 (1964); n. 4, supra. A owner's ability profits reflected notion able force disgorge fruits even caused him injury. excluded gain eliminating profits, Mfg., supra, determination often required protracted litigation. H.R.Rep. 1587, 79th Cong., 2d Sess., 1-2 (1946); S.Rep. 1503, (1946), U.S.Code Cong.Serv.1946, p. 1386; 92 Cong.Rec. 9188 (1946) (remarks Senator Pepper). At same time, fact receive "any damages" suffered result H.R.Rep., ("any complainant can prove"); S.Rep., 2, 1387 (same). Accordingly, "shall infringement." (Emphasis added.)9 13 consistent overriding affording owners complete compensation. light conclude awarded. placed agreement.10 An foregone 14 very principle decision Waite States, 282 508, 51 227, 75 494 (1931), involved States. form lost id., denied "complete justice States," 509, though suits Just infringement," issue patentee "reasonable entire compensation." 28 1498. addition, contains thus strong support our conclusion 15 do construe requiring whenever found. That "fixed court," view leaves discretion For example, perhaps deny altogether, responsible undue delay prosecuting lawsuit.11 circumstances need delineate those hold III 16 Because award, will set aside constitutes discretion. Devex's over course number years While contends guilty causing unnecessary delay, rejected contention when concluded "Devex done worse fully litigate its claims achieving large favor" conclusion. F.Supp., 1380.12 these facts, proper. 17 circuit 18 Affirmed. 19 STEVENS, concurring. 20 replaced presumption favoring ordinary As correctly holds, automatically require "award found." Ante, 656. exercising cases, properly take account nature strength defendant's challenge. 21 contexts noted public function served Lear, Inc. Adkins, 395 653, 670, 89 1902, 1911, 23 610 (1969), Harlan, writing Court, explained: 22 "A patent, last analysis, simply represents legal Office. Moreover, predicated factors men differ widely. Yet Office obliged reach ex parte proceeding, without aid arguments advanced parties interested proving invalidity." Hence, challenge permits informed regarding merits And, long recognized, "It important competition repressed worthless patents, really valuable protected monopoly; . ." Pope Manufacturing Gormully, 144 224, 234, 632, 636, 414 (1892). 24 Of course, litigation justify denial Wisely today attempt define precisely category although ultimately unsuccessful litigation, sufficiently justified exercise But existence overlooked. named Houdaille Industries defendant. Delaware, tried separately, see Ind., 382 1967), eventually settled. Claim covers: "The working ferrous comprises forming surface phosphate coating superimposing thereon film composition comprising solid meltable organic binding material containing distributed through inorganic compound temperature melting point having hardness exceeding Mohs' scale, thereafter deforming metal." technical terms, employed "phosphate, soap borax lubricate pressure-forming operation, preventing harmful contact products machinery they formed. [T]he phosphate, combination especially beneficial because easily cleaned product following formation." 1369, 1372 (D.Del.1980). multiple authorized 285, inappropriate These findings affirmed before us. R.S. 4921, amended, 42 392, 70, "[U]pon decree being rendered entitled recover, accounted defendant, sustained thereby." rule treated liquidated relatively ascertainable market values. Miller Robertson, 266 243, 258, 45 73, 78, 69 265 (1924); D. Dobbs, Law Remedies 3.5 (1973); C. McCormick, Damages 51, 54-56 (1935); "Prejudgment Interest: Element Not Overlooked," Cumberland L.Rev. 521, 522-523 (1977). Thus whose charged damages, here, based court, 1952 codification, 67 70 Code consolidated remained unchanged present day. stated codification "reorganization clarify statement statutes." 1923, 82d 10, 29 (1952), Cong. Admin.News 1952, pp. 2394, 2403. Compare Columbia Broadcasting System, Zenith Radio 537 896 1976) (no circumstances); Radiator Specialty Micek, 763 (CA9 1968) (same) (dictum), Georgia-Pacific Plywood-Champion Papers, Inc., 446 295 (CA2) (§ standard), 404 105, 30 114 (1971); Trio Process L. Goldstein's Sons, 638 661 1981) (same); Electric Sciaky Bros. 415 1068 (CA6 1969) Milgo Business Communications, 623 645 (CA10) (same), 449 1066, 101 794, 66 611 (1980). 285 provides: attorney party." phrase cases" amendments, compilation purposes clarification only. note 6, (emphasis added). wording amendment passed slightly different. It compensation" derived House bill "from occurred." H.R. 5311 Pt. 1. Senate Committee enacted currently legislative history substitution solely discretionary rather mandatory; indication substantive change treatment 2. passage preceded assurance Rep. Lanham, who managed bill, modification concerned 10649 (1946). (1931); Jacobs 290 13, 16, 54 26, 27, 78 142 (1933) (interest taking constitute Fifth Amendment); (1924) (prejudgment "full compensation"). traditional view, penalty conduct, criticized ground "delay component 3.5, 174; 206-211 To Be 521 denying undercompensates grant windfall create incentive prolong reason why stand better agrees pay fails financial difficulties. Board Commissioners 308 343, 352-353, 289, 313 (1939); Redfield Bartels, 139 694, 701, 685, 310 (1891); First National Bank Chicago Material Serv. 597 1110, 1121-1121 1979). 220-221, 228-229 (cases cited therein); L.Rev., 534 therein). unduly delayed prosecution lawsuit committed reviewable Court's rested cause "unnecessary [obtain] slight success." 1380. costs,

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