Technical LED Intellectual Property, LLC v. Aeon Labs LLC

Background

Technical LED Intellectual Property, LLC sued Aeon Labs LLC for infringement of the '685 Patent. Aeon Labs was properly served but never responded to the complaint, the motion for entry of default, the motion for default judgment, or the motion seeking damages, attorney’s fees, and litigation costs. A default judgment is a judgment entered when a party fails to defend the case.

Magistrate Judge Jacqueline Scott Corley recommended awarding $30,144.12 in damages, $55,444.95 in attorney’s fees, and $2,332.09 in litigation costs. She did not recommend injunctive relief. The district court directed Technical LED to serve the recommendation on Aeon Labs, but Aeon Labs again did not respond.

Court’s Analysis

Because no party objected to the recommendation, the court reviewed the record for clear error and found none. For patent damages, the court approved a reasonable-royalty calculation based on the number of infringing products sold and a nine-percent royalty rate. The court accepted the recommendation’s estimate that Aeon Labs received $202,285.17 from sales of infringing products.

The court also approved enhanced damages for sales made after Aeon Labs learned about the infringement lawsuit. Although the complaint did not adequately plead willful infringement before the lawsuit began, Aeon Labs’s counsel confirmed receipt of the complaint, and Aeon Labs continued selling infringing products while ignoring the litigation. The court therefore approved an additional $11,938.12, bringing the damages award to $30,144.12.

The court found that attorney’s fees were appropriate because the case was exceptional under 35 U.S.C. § 285. Aeon Labs continued the alleged infringement after receiving the complaint and failed to participate in the case, requiring Technical LED to incur additional expenses. Applying the lodestar method—reasonable hours multiplied by reasonable hourly rates—the court approved a ten-percent reduction to account for billing records from another case that Technical LED’s counsel initially submitted. The resulting fee award was $55,444.95.

The court also approved $2,332.09 in litigation costs under 35 U.S.C. § 284.

Disposition

The court accepted and adopted Judge Corley’s report and recommendation. Technical LED’s motion for default judgment was granted in part, and judgment was ordered in the total amount of $87,921.16, consisting of $30,144.12 in damages, $55,444.95 in attorney’s fees, and $2,332.09 in litigation costs. The opinion states that the recommendation did not include injunctive relief.