Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today announced that, on October 12, 2010, the U.S. Supreme Court granted a writ of certiorari in the case of Global-Tech v. SEB to decide the level of intent required for inducing infringement. Specifically, the question on which the Supreme Court granted the writ of certiorari is whether the legal standard for the "state of mind" element of a claim for actively inducing infringement under 35 U.S.C. § 271(b) is "deliberate indifference of a known risk" that an infringement may occur or instead "purposeful, culpable expression and conduct" to encourage an infringement.
As previously disclosed, SEB filed a lawsuit in the U.S. District Court for the Southern District of New York against Montgomery Ward & Co, Inc., Global-Tech Appliances Inc. and Pentalpha Enterprises, Ltd. for alleged infringement of a patent on a certain type of deep fryer. A jury returned a verdict and found that Pentalpha both directly infringed and induced infringement of the patent. SEB was awarded royalty damages of $4.65 million, an amount that later was reduced by the district court by $2 million. Pentalpha appealed asserting errors by the district court that relate to the jury verdict and several post-trial rulings. SEB cross-appealed and sought enhanced damages. In February 2010, the U.S. Court of Appeals for the Federal Circuit affirmed the district court decision. Global-Tech filed a petition for writ of certiorari on June 23, 2010 contending that the U.S. Court of Appeals erred in using the “deliberate indifference” standard in finding inducement.
Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market a diversified portfolio of products and services, such as complementary metal oxide semiconductor (CMOS) camera modules (CCMs), floor care products, and electronic manufacturing services (EMS). The primary focus of its subsidiaries is to develop and market high-quality products and services for the communications industries within the China market, as well as markets in North America, Europe, and other countries throughout the world.