Simpson Thacher client 3Com Corporation and Realtek Semiconductor Corporation have announced an agreement to resolve their long-standing patent dispute, under which Realtek will pay 3Com a total of $70 million in royalties for the rights granted under the agreement.
On April 9, 2008, after a two week jury trial in the U.S. District Court in San Francisco, before Chief Judge Vaughn R. Walker, a jury returned a verdict finding that Realtek infringed six claims of four separate 3Com patents, that those claims were all valid, that the infringement was willful, and that Realtek induced infringement on the part of its U.S. customers. The jury also awarded 3Com $45.3 million in damages. On June 26, 2008, the parties returned to Judge Walker’s courtroom to argue a series of post-trial motions, including 3Com’s motions seeking an award of enhanced damages, prejudgment interest, attorneys’ fees, and a permanent injunction against continued infringement. Those motions were pending at the time the parties resolved their differences.
Hank Gutman and Kerry Konrad served as trial counsel for 3Com. The trial team consisted of Victor Cole, Brian McCloskey, Amanda Motsinger, Phillip Sternhell, and Greg Chuebon from the New York office. Jeff Ostrow and Gabe Rubin (as well as others) in the Palo Alto office provided critical support, as did Noah Leibowitz in the New York office. Summer associates Ana-Claudia Draganovic and Joseph Gay also assisted with post-trial efforts. Paralegals Dan O’Neil, Stephanie Crosskey, Joseph Law, and Lea Levy provided valuable support, as did IT specialist Marlon Bonny.