Federal Circuit finds Successor Company Liable for Infringement by Prior Company

Stein Ip Blawg

In Funai v. Daewoo (DEC, DEAM, DECL, and DECA), 2010 U.S. App. LEXIS 18237 (Fed. Cir., September 1, 2010), Funai is the owner of six patents relating to reducing a cost of manufacturing of video cassette recorders (VCRs) and disclosed electrical and mechanical features of the VCRs.  In May 2004, Funai Electric Co., Ltd. (Funai) brought suit against Daewoo Electronics Corp. (DEC) and its U.S. subsidiary, Daewoo Electronics America, Inc. (DEAM) and also the two entities’ predecessors, Daewoo Electronics Co., Ltd. (DECL) and Daewoo Electronics Corp. of America (DECA) in the U.S. District Court for the Northern District of California for infringement of six of Funai’s U.S. patents.

DECL and DECA stopped participating in the lawsuit in May 2005 by presenting no defense against the accusations and by refusing discovery. Consequently, the District Court entered default judgment against DECL and DECA, and awarded $6,956,187 in damages to Funai.  DECL…

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