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October 31, 2007

Called Card

AT&T won a reversal of the stunning $156 million tab for infringing TGIP calling card patents. Judge Ron Clark in the Eastern District of Texas cast aside a doctrine of equivalents (DOE) jury verdict based on non-infringement, given claim construction.

TGIP had been unable to convince the jury of direct infringement.

Claim construction was that there could be no infringement if "the call authorization amount is linked to the calling card prior to its activation." AT&T provided evidence showing that was how its system worked, as the host computer knows the number and value amount of a calling card prior to its activation, even before the card is printed. Judge Clark bought this argument.

Other JMOL motions were denied: joint infringement, willfulness, invalidity by obviousness, laches and equitable estoppel.

AT&T was the only defendant to fight TGIP down to the wire; others, including MCI/Verizon, settled and took licenses.

Previous coverage from the Patent Prospector. More on this matter: Judge Clark's ruling; Michael Smith at the EDTexweblog.

Posted by Patent Hawk at October 31, 2007 12:27 AM | Litigation

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