Jury issues $10 million verdict against Chinese Android manufacturer in patent infringement case

By Asia Mayfield | Sep 7, 2018

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MARSHALL – Two Plano-based companies were awarded more than $10 million in their suit against Chinese smartphone maker Huawei.

A jury determined that the Chinese Android manufacturer willfully infringed on multiple wireless communications patents owned by Optis Wireless Technology and PanOptis Patent Management. 

The verdict was delivered on Aug. 27 in the Marshall Division of the Eastern District of Texas. 

“The jury was focused and worked very hard to understand the complex technology and the many patents that are involved in the case,” PanOptis’ lead trial lawyer Ted Stevenson of McKool Smith explained to The Texas Lawbook. “The jurors were very attentive, took the case very seriously, and we think they got it right. We’re very pleased with the verdict.”  

According to the Dallas Business Journal, one of the PanOptis patents is related to decoding data while the other four revolve around improving 4G LTE efficiency. The lawsuit was filed February.

The Dallas Business Journal reported that PanOptis alleged that it met with Huawei representatives multiple times over a two-year span to try to work out a deal and “initiated and exchanged written correspondence with Huawei numerous times.” However, the company noted that Huawei never “reciprocated PanOptis’s good faith efforts.”  

PanOptis alleged many of the Android smartphones currently being sold by Huawei infringe on the PanOptis patents. Some of them appear in major U.S. retailers like Best Buy.  

In response to the allegations, Huawei claims both that it never violated the patents and that the patents were invalid to begin with. The company filed counterclaims asking for declaratory judgment. Both of its requests were denied by the jury.  

Damages in the case have been arranged as a running royalty.  U.S. District Judge Rodney Gilstrap will eventually determine the rate Huawei will have to pay if it continues to infringe the patents.  

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