Kaye Scholer Secures Lost Profits and Enhanced Damages Award for AAT Bioquest in Patent Dispute

On Monday, November 30, after a complete win on liability, the Northern District of California Court awarded AAT Bioquest lost profits damages against competitor Texas Fluorescence Laboratories (“TEFLabs”) and trebled that award based on its finding of willfulness after a bench trial in a patent litigation dispute.

A Kaye Scholer Silicon Valley-based team secured this critical victory for client AAT Bioquest, a small, Bay Area biotech company that develops and markets cutting-edge calcium indicators used to observe and measure cell signaling, as well as other research reagents and kits. This win follows on the heels of earlier case victories, including favorable summary judgment rulings of no invalidity and no inequitable conduct (defeating five asserted defenses) in favor of AAT Bioquest, and a permanent injunction enjoining TEFLabs’ infringing activity.

In August 2014, AAT Bioquest filed this patent enforcement suit against TEFLabs, a competitor who had copied AAT Bioquest’s best-selling fluorescent calcium indicator and began selling an infringing copycat product. After Kaye Scholer prevailed on all liability issues in summary judgment, the court conducted a bench trial on issues of remedies and exceptional case. AAT Bioquest requested lost profits (based on fact testimony alone) and trebled damages for willful infringement, while TEFLabs argued that a reasonable royalty without enhancement would be sufficient. Based on findings that AAT Bioquest established lost profits and that TEFLabs’ infringement was willful, the Court awarded AAT Bioquest lost profits damages and trebled its award for willfulness. The Court also made the rare finding of exceptional case based on TEFLabs’ litigation misconduct.

Partner Deborah Fishman and counsel Krista Carter led the team and co-chaired the trial. The case team also included partner Steve Holmes and associates Assad Rajani and Rob Estrin.