Loops LLC v. Phoenix Trading, Inc.

Loops LLC v. Phoenix Trading, Inc.

Opinion

BENCH ORDER, FINDINGS OF FACT, AND CONCLUSIONS OF LAW

I. INTRODUCTION

In this action, Plaintiffs Loops, LLC and Loops Flexbrush, LLC (collectively "Loops") alleged that Amercare fraudulently obtained a sample of the patented Loops Flexbrush, sent the sample to China to be copied, and sold the infringing copies at a lower price, outbidding Loops on a supply contract. Loops originally brought claims for patent infringement, violations of the Lanham Act, unfair competition under Washington common law, violations of the Washington Consumer Protection Act, and fraud. After numerous dispositive rulings, the only claim left for trial was one for patent infringement, limited only as to Amercare, Wendy Hemming and H&L, and only as to the import [*3]  in July 2008. Dkt. #405 at 6.

On October 24, 2016, the Court conducted a bench trial in this matter. Prior to that trial, the parties submitted a proposed Pretrial Order, wherein Defendants stipulated to liability and agreed that Plaintiffs were owed compensatory damages. Dkt. #417. The Court adopted the Pretrial Order. Dkt. #418. Accordingly, the only issues left for trial were related to damages — specifically, whether Plaintiffs are entitled to treble damages under 35 U.S.C. § 284, and whether Plaintiffs are entitled to their attorneys' fees under 35 U.S.C. § 285.

At trial, there was one live witness, Defendant Wendy Hemming. The parties had stipulated to the admission of two exhibits — the Loops '286 patent (Exhibit No. 83) and a letter dated June 13, 2008, from Plaintiffs' counsel to Defendant Hemming (Exhibit No. 109) — however, of those two exhibits, only Exhibit No. 109 was actually offered at trial. See Dkts. #418 and #426. Plaintiffs also offered additional exhibits — Exhibit Nos. 4, 36, 69, 116, 133, 134 and 136. Following the bench trial, the parties submitted proposed Findings of Fact and Conclusions of Law. Dkts. #424 and #425.

Having considered the pleadings, trial briefs, sworn testimony of witnesses, and exhibits, [*4]  the Court now FINDS AND CONCLUDES that Plaintiffs are not entitled to treble damages, and are not entitled to attorneys' fees, and makes the following Findings of Fact and Conclusions of Law.

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