The U.S. Federal Circuit has reissued its decision in Constellation Designs v. LG Electronics, maintaining a $6.75 per television ongoing royalty despite ruling five of nine asserted patent claims ineligible. The court removed a footnote regarding technology-based damages, leaving the damages award intact based on LG's procedural forfeiture during the appeal.
This ruling underscores the high stakes of procedural compliance in patent litigation, as LG remains liable for the full royalty amount despite successfully invalidating more than half of the asserted claims. For the streaming hardware ecosystem, the decision highlights how undifferentiated royalty rates can persist even when the underlying patent portfolio is weakened. The court's removal of the 'technology-based' footnote prevents a broader shift in how damages are calculated, maintaining the requirement that awards must be tied to specific infringed claims rather than general technical standards. Watch for whether LG attempts a further appeal to the Supreme Court to challenge the forfeiture ruling on the grounds of the apportionment requirement.
The court's decision follows a long-standing dispute where LG Electronics faces royalty obligations that persist despite the invalidation of several key patents. Recent patent injunction activity in Europe further illustrates the growing complexity of enforcing intellectual property rights across global streaming markets.
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