Opinion ID: 6944934
Heading Depth: 2
Heading Rank: 5

Heading: Inducement to Infringe the ’966 Patent

Text: In its cross-appeal, Fonar argues that the district court erred when it overturned the jury’s verdict finding that GE induced infringement of the ’966 patent. It argues that it submitted substantial evidence that GE induced infringement by continuing to service scanners that it sold before receiving notice of the patent. GE responds that Fo-nar failed to mark the scanners that are the subject of its inducement claim and that there is no liability for inducement to infringe where the original purchaser had a right to repair and service the scanners. The statute concerning patent marking states in relevant part that In the event of failure so to mark, no damages shall be recovered by the paten-tee in any action for infringement, except on proof that the infringer was notified of the infringement and continued to infringe thereafter, in which event damages may be recovered only for infringement occurring after such notice. 35 U.S.C. § 287(a) (1994). GE is correct. The machines in question were not marked, so that no damages were recoverable before notice was given. Moreover, servicing of the machines was analogous to repair, see Aro Mfg. Co. v. Convertible Top Replacement Co., 365 U.S. 336, 346, 81 S.Ct. 599, 604-05, 5 L.Ed.2d 592, 128 USPQ 354, 359 (1961), and repair is not infringement. If a machine was sold under circumstances that did not subject its seller to damages, then subsequent repair cannot subject it to damages. One is entitled to repair that which is sold free of liability for infringement. Therefore, the district court did not err in granting GE’s motion for JMOL that it did not induce infringement of the ’966 patent.