Thursday, September 24th 2015
ASETEK – Court Confirms Judgement, Increases Damages Award and Issues Injunction
In late 2014, Asetek won a patent infringement case against CMI USA, Inc. ("CMI") at the United States District Court for the Northern District of California. The jury unanimously ruled in favor of Asetek, and awarded damages based on a 14.5% royalty rate. In a post trial motion, CMI demanded a judgement as a matter of law and a new trial.
The court yesterday denied CMI's demands, and instead substantially followed Asetek's requests and issued a permanent injunction barring CMI and its parent Cooler Master from selling certain infringing products into the Unites States. Also, the judge awarded Asetek enhanced damages i.e., a 25.375% royalty rate, on CMI's revenues for sales of infringing products beginning January 1, 2015. It should be noted that the matter is appealable by CMI.
The court yesterday denied CMI's demands, and instead substantially followed Asetek's requests and issued a permanent injunction barring CMI and its parent Cooler Master from selling certain infringing products into the Unites States. Also, the judge awarded Asetek enhanced damages i.e., a 25.375% royalty rate, on CMI's revenues for sales of infringing products beginning January 1, 2015. It should be noted that the matter is appealable by CMI.
45 Comments on ASETEK – Court Confirms Judgement, Increases Damages Award and Issues Injunction
That seems to be the place where everyone is getting the news from. Since most site are coping that word for word.
There are a few hybrid coolers (EVGA) on cards that could be affected too.
I suspect Cooler Master will just pass on the royalty cost to the ODM/OEM's using their product - and will probably just have to suck it up for those products already in the wild.
Yes, they have the right to patents with regards to their waterblock, pumps etc. but they shouldn't be able to have a patent on sealed loop liquid cooling, as it blocks any and all competition.
Just thinking out loud mind and they may well be patent trolls riding on a dodgy patent. The US patent system isn't fit for purpose after all.
And I'd call a 1-to-1 copying stealing: CoolerMaster left; Asetek right
There are clearly some similarities, but how many different ways can you do a pump? It's not as if Asetek invented the pump.
I'm not trying to defend either company here, as Cooler Master has clearly taken some privileges, but it's not the first company Asetek has gone after.
This is very much on the same topic - www.asetek.com/press-room/news/2015/asetek-announces-positive-conclusion-of-lawsuit-with-coolit-systems-inc/
It seems to be that Asetek is becoming something of a patent troll, as they clearly can't stand any kind of competition and if they make as superior products as they claim, shouldn't the products speak for themselves, rather than Asetek having to sue every other company even looking like they'll do a liquid cooling solution?
I'm not trying to defend them either as they are acting like a troll and their sueing will only getting worse, as this patent covers liquid cooled add-in-boards in general: www.freepatentsonline.com/20130058038.pdf
But CoolerMaster clearly cloned some of their products and now has to face the consequences.
Others were able to do CLCs without infringing the patent: www.antec.com/product.php?id=706542&pid=58&lan=nz
www.dvhardware.net/article4746.html
That said, going by the 1-to-1 logic, then Zalman ought to be next to get in legal trouble, or maybe Asetek doesn't care about them, since they have a tiny market share...
And so, FuryX is never coming to Canada, and this is why cards are still on pre-order? That doesn't make any sense. Why the Nano costs $650? Yeah, that might explain a bit.
There are only 3 Fury X's available in UK at OcUK but they have 26+ Nano's.
Yet, I check the local store today, and XFX's FuryX is in stock, but one card in a city that is a 28 hour drive away, and that store doesn't ship. Dammit.
Nano also available, but also not local. Nano is also $40 less than FuryX.
So... perhaps this does not affect AMD cards here in Canada so much.
Looking at the two it’s a sure bet, CoolerMaster did not come away with that
indistinguishablelayout without embracing the Asetek’s design. Sure one might explore it for guidance, but only to the point designer grasps the extents of the patents, and comes away with critical departures so not to infringe on those patents, and it doesn’t appear they did that.EDIT: After looking at the two pictures provided, I notice a subtle difference in the impeller and how each works with the volute. Notice the tip clearance on the Asetek “leads in” on the sweep and then relieves on the discharge. The CoolerMaster appear to have a significantly open sweep on the lead-in, while holds a tight clearance as it discharges. That can be enough to deviate the other characteristics in other internal profiles to differ enough to cause air and noise to be a difference in the overall design structure.
Not every company that sues about patents is a patent troll. This. It is possible for CoolerMaster to continue to sell their products. They just have to pay royalties to Asetek for using Asetek's patent. They also have to pay the back royalties before they can begin selling the infringing products again.
This is another reason this isn't a patent troll case. Patent trolls tend to just want huge settlements and ask for huge unreasonable royalties. Asetek asked the courts to set a fair licensing amount, which the courts did at 14.5%. CoolerMaster F'd up by appealing, which in a unanimous decision is often viewed by the appeal judge as a waste of time or stall tactic, so the appeal judge penalized CoolerMaster even more by raising the royalty fee to 25%.
Also, the injunction just went into affect with the latest ruling, so it should not have affected supply before this decision.
I think the real reason for appeal was not to stall, but instead in hopes the appeals judge would lower the royalty amount. It backfired.