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State Industries v. Mor-Flo Industries

883 F.2d 1573 (1989)

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State Industries v. Mor-Flo Industries

United States Court of Appeals for the Federal Circuit
883 F.2d 1573 (1989)

Facts

State Industries, Inc. (plaintiff) held a patent on a method of insulating water heaters with foam. State Industries brought suit against Mor-Flo Industries, Inc. and its subsidiary, American Appliance Manufacturing Corporation (collectively, Mor-Flo) (defendant) for infringement of the patent, seeking damages for lost profits and a reasonable royalty. State Industries established that it had a 40-percent nationwide market share and that it had the ability to ship and sell enough water heaters to fulfill its market share of the sales made by Mor-Flo. This was not disputed by Mor-Flo. The federal district court found that Mor-Flo had infringed the patent. The court assessed damages at 40 percent of Mor-Flo’s infringing sales plus a reasonable royalty of 3 percent on the remainder of Mor-Flo's sales. Mor-Flo appealed to the United States Court of Appeals for the Federal Circuit.

Rule of Law

Issue

Holding and Reasoning (Mayer, J.)

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