Opinion ID: 597512
Heading Depth: 2
Heading Rank: 11

Heading: Enhancement of Damages

Text: 129 The district court granted Hayes' motion for a permanent injunction, but stayed the injunction pending appeal. In granting the stay, the court permitted continued sales by Ven-Tel and required Ven-Tel to pay a royalty of 1.75% into escrow. Additionally, the district court awarded Hayes double damages, granted Hayes' request for an accounting of infringing sales from December 31, 1990 until April 22, 1991, the date of the court's judgment and order, and awarded enhancement of this portion of the damages as well. Hayes cross-appeals, arguing that the district court abused its discretion by failing to enhance the interim royalty during the pendency of this appeal. Hayes asserts that during the appeal period, Ven-Tel is still a willful infringer, albeit one paying an interim royalty imposed by the district court. According to Hayes, it is inconsistent for Ven-Tel to pay an enhanced royalty rate on all damages except those during the appeal period. 130 A finding of willfulness may be a basis for an award of enhanced damages under 35 U.S.C. § 284 (1988). 13 See, e.g., Underwater Devices, 717 F.2d at 1389-90, 219 USPQ at 576-77 (upholding finding of willful infringement and award of treble damages). This court will not disturb a trial court's refusal to award enhanced damages unless we determine that it abused its discretion. Rite-Hite Corp. v. Kelley Co., 819 F.2d 1120, 1126, 2 USPQ2d 1915, 1919 (Fed.Cir.1987). 131 In this case, the district court awarded Hayes enhanced damages. Hayes' objection is to the failure of the court to enhance the interim royalty imposed in lieu of the permanent injunction, which is stayed pending this appeal. Although we agree with Hayes that it seems somewhat illogical to have awarded Hayes double damages prior to the filing of the appeal, but fail to do so during the appeal, we cannot say that the court abused its discretion. Apparently, although not clearly stated, the district court did consider enhancement of the interim royalty. The district court, when addressing the motion to stay the injunction, stated that [i]n granting enhanced damages and attorney fees against defendants, the court is imposing substantial penalties on defendants for their willful infringement. In re Hayes, 766 F.Supp. at 823, 20 USPQ2d at 1840 (Footnote omitted). Thus, the enhanced damages that were granted along with the attorney fee award appear to be all that the court intended to serve as a penalty and deterrent. No abuse of discretion is found.