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When the Little Guys Win: Nonprofit Awarded $268M After Patent Dispute

A nonprofit medical research foundation spent over a decade in court after a competitor infringed its patents and refused to license the technology. A federal judge reinstated the jury's damages award and doubled it for willful infringement, a reminder that strong patent protection and skilled litigation can produce real financial recovery.

A shelf of leather-bound law reports in warm light

Human beings have always been innovative, but sometimes the journey to an acknowledgment of that innovation can be a rough and rocky road. In the world of patents (of which the USPTO receives 500,000 applications a year), the ones who invented something spectacular don’t always receive the recognition, and profit, that comes with it, as the nonprofit organization Alfred E. Mann Foundation (AMF) discovered the hard way.

Over 15 years ago, they took Australia-based Cochlear Corporation to court for an intellectual property issue: Cochlear infringed on AMF’s patents and reaped the benefits for more than 15 years while refusing to take a license. After convincing a jury that an injustice had been done, they successfully moved on to convince a judge.

“It was particularly satisfying that the judge recognized the blatant nature of Cochlear’s infringement, and the extraordinary delays and extra expense caused by its litigation strategy, by not only reinstating the original jury verdict in its entirety, but by enhancing the damages by 100 percent,” said John Petrovich, CEO of AMF.

U.S. Judge Fernando M. Olguin reinstated a jury award of $134 million and granted AMF’s motion for enhanced damages due to a finding of willful infringement by Cochlear, which doubled the damages reward. The total amount? An astounding $268 million. Olguin had this to say about the case.

“In short, Cochlear’s kitchen-sink approach throughout this case has been to raise arguments, many of which are unsupported or mischaracterize the record, that could have been raised earlier, with no effort to explain why they were not and why it is appropriate to raise them now.”

Though it took over a decade, the Little Guys were able to stand up to a major corporation and come away with a win. Obviously, the best way to avoid an intellectual property issue like this is to employ excellent and thorough patent lawyers in the beginning. Their expertise, though not foolproof, can significantly reduce the chances of another corporation coming along to steal your glory.

Contact the Leavitt & Eldredge Law Firm to ensure your genius is yours alone. Book your free consultation with one of our patent litigation attorneys to help you get started in protecting what’s yours.

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Common questions

Frequently asked

What happened in the Alfred E. Mann Foundation patent case?
The nonprofit foundation sued Cochlear Corporation for infringing patents tied to a hearing-implant technology and refusing to take a license. After a 15-year fight, a federal judge reinstated a $134 million jury verdict and doubled it for willful infringement, bringing the total award to $268 million.
Why did the damages get doubled in this patent case?
The judge doubled the jury's award because the court found Cochlear's infringement was willful. Enhanced damages exist under patent law to punish infringers who knew about a patent and used the invention anyway, rather than negotiating a license in good faith with the patent holder.
What can inventors learn from a patent infringement case like this one?
Even a small nonprofit can win a major case against a much larger company when its patents are drafted carefully and its litigation team can prove willful infringement. Working with an experienced patent attorney from the start makes that kind of outcome possible for any inventor.