EcoFactor Inc. has urged the Federal Circuit to deny Google LLC’s request for a full court rehearing after a panel upheld a $20 million patent infringement damages award in EcoFactor’s favor. The case centers on allegations that Google’s Nest thermostats infringed EcoFactor’s smart thermostat patent, and the current ruling could have significant implications for future patent litigation.
$20M Google Royalty Ruling : Google’s Bid for Rehearing
Google’s petition for an en banc rehearing follows a split panel decision in June that affirmed the $20 million award. Google argues that the decision permits patent holders to “manufacture a royalty rate” without properly apportioning it to the value of the patent in question relative to the infringing products. This, according to Google, could set a dangerous precedent allowing inflated damages in patent cases.
In support of its position, Google cites U.S. Circuit Judge Sharon Prost’s dissent, which contends that the damages awarded were improperly based on license agreements that did not reflect the appropriate royalty rate structure.
$20M Google Royalty Ruling : EcoFactor’s Response
EcoFactor, in its Wednesday response, counters that the June decision was both legally sound and supported by evidence. The company maintains that the $20 million damages award was appropriately calculated using multiple license agreements with Google’s competitors, which were relevant and indicative of the value of the patent in question.
