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30 November 2017Patents

Georgia jury sides with Velcro in patent case

The US District Court for the Middle District of Georgia has issued its first patent jury verdict since 2001, in a case between Japanese company YKK and its rival Velcro.

The decision (pdf) is also the first patent jury verdict in the state of Georgia since 2008.

YKK, which is the world’s largest zip manufacturer, sued Velcro in August 2013, alleging infringement of its US patent number 6,720,059, titled “Fastener strip having sealing vertical wall”.

The patent was applied for in 2001 and granted in 2004. It is exclusively licensed to YKK (USA), which has its principal place of business in Marietta, Georgia.

YKK alleged that Velcro’s 4GI and MH4 fasteners infringed the patent. It sought an injunction and damages, including enhanced damages for wilful infringement, and requested a jury trial.

But, after four years of litigation, the jury found that there was no infringement in a verdict on November 17.

The case is commercially important as many cars with fabric or leather covers use hook fastener strips in seat cushions to secure trim covers.

It may also be of interest as plaintiffs in patent cases explore alternative venues following the US Supreme Court ruling in TC Heartland v Kraft Foods Group Brands earlier this year.

In TC Heartland, the court said that patent suits against domestic companies should be brought in the “state of incorporation”. The decision has already led to cases moving away from popular jurisdictions such as the Eastern District of Texas, according to research.

Fraser Cameron, president and CEO of Velcro Companies, said in a statement: “Innovation is what drives our work and has been deeply rooted in the company since its founding more than 60 years ago.

“We strongly believe in ethical conduct and the value of intellectual property, and we take care to ensure our new products do not infringe on existing patents. We are pleased the jury in this case agreed with us.”

Jim Reed, president of YKK Corporation of America, said YKK operates under a “core set of principles” that include respecting others' IP. At the same time, he added, “YKK must, and will continue to, protect its own IP”, as it was required to do in this case against Velcro.

YKK was represented by Kilpatrick Townsend & Stockton and Velcro by Fish & Richardson.

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