Western Digital significantly reduced its patent infringement liability in a case involving SPEX Technologies Inc. Initially ordered to pay $553 million for infringing on data encryption patents, a judge found that SPEX's claims shifted during litigation. The damages were ultimately reduced to just $1. Judge Selna cited insufficient evidence from SPEX to substantiate a reasonable royalty amount, resulting in a nominal damages ruling, despite the affirmation of WD's liability. Legal motions by WD seeking retrial and overturning the verdict were denied, underscoring the complexities of patent infringement cases.
"Throughout this litigation, SPEX's damages theory changed as certain evidence and theories became unavailable. ...there is insufficient evidence from which the Court could determine a reasonable royalty."
"Accordingly, the Court enters nominal damages in the amount of $1," he stated, emphasizing that a dollar amount was necessary to tie the infringing acts.
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