litigation. That business owner may not be engaging in reckless behavior justifying an
award of enhanced damages. Id., slip op. at 4 (Breyer, J., concurring).
Further, Justice
Breyer notes that not all small businesses may be able to afford obtaining an opinion of
counsel and that a failure to obtain an opinion need not prescribe a finding of enhanced
damages. Id. at 2-3 (“an owner of a small firm, or a scientist, engineer, or technician
working there, might, without being ‘wanton’ or ‘reckless,’ reasonably determine that its
product does not infringe a particular patent, or that that patent is probably invalid.”).
The
concurrence also notes that, due to the Federal Circuit’s expertise on patent issues, there
may be instances where a district court improperly awards enhanced damages because
it erroneously misapprehended the reasonableness of a patent defense. Id. at 5.
In such
a case, the Federal Circuit would be within its purview to find an abuse of discretion. Id.
Justice Breyer’s concurrence may provide accused infringers with some comfort in its
observation that enhanced damages should be not be abandoned, but rather carefully
applied “to ensure that they only target cases of egregious misconduct.” Id. at 5.
Given the new standard articulated in Halo, the task will largely fall on the district
courts to sort out what behavior will be deemed “egregious,” warranting enhanced
damages, and what behavior will be characterized as merely routine or “garden variety”
infringement.
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