Opinion ID: 676015
Heading Depth: 2
Heading Rank: 4

Heading: Willful Infringement and Increased Damages

Text: 32 A court may, should it find from all of the circumstances that infringement was willful, increase the amount of damages under 35 U.S.C. Sec. 284 (1988). A finding of willfulness justifies, but does not compel, an award of enhanced damages. State Indus., Inc. v. Mor-Flo Indus., Inc., 948 F.2d 1573, 1576, 20 USPQ2d 1738, 1740 (Fed.Cir.1991). A finding of willful infringement is reviewed under the clearly erroneous standard. Minnesota Mining & Mfg. Co. v. Johnson & Johnson Orthopaedics, Inc., 976 F.2d 1559, 1580, 24 USPQ2d 1321, 1338 (Fed.Cir.1992). 33 Matsushita argues that Gustafson, Inc. v. Intersystems Indus. Products, Inc., 897 F.2d 508, 13 USPQ2d 1972 (Fed.Cir.1990), precludes a willfulness finding because it received knowledge of the '028 patent and the ITC complaint simultaneously. However, Gustafson held that simultaneous receipt combined with nonfrivolous defenses would preclude a willfulness finding. Id. at 511. The Master concluded that Matsushita's continued infringement after the ITC holding of invalidity was reversed and after summary judgment of infringement was granted supported a finding of willful infringement because then Matsushita had no nonfrivolous noninfringement defenses. Viewing the totality of the circumstances, including the Master's justified conclusion that Matsushita either did not obtain advice of counsel or obtained advice that it infringed, and Matsushita's suspect conduct regarding the nomenclature of the two-piece fan, we conclude that the willfulness determination was not clearly erroneous. 34 Although not set forth as such, the Master weighed a majority of the factors to be considered in a determination to enhance damages enumerated by this court in Read Corp. v. Portec, Inc., 970 F.2d 816, 827, 23 USPQ2d 1426, 1435-36 (Fed.Cir.1992), including ameliorating or mitigating factors. Matsushita has failed to convince us that the Master abused his discretion in trebling damages and awarding attorney fees. Accordingly, the judgment of the district court is affirmed.