Camera company recycled disposable cameras: Patent infringement: Lost profits, royalties: Verdict

Law Reporter, Jun 2003

Fuji Photo Film Co., Ltd. v. Jazz Photo Corp., Inc., U.S. Dist. Ct., D.N.J., No. 99-CV-2937, Dec. 2, 2002.

Fuji Photo Film Company (Fuji) manufactured single-use, disposable cameras. Jazz Photo Corporation (Jazz) purchased refurbished cameras-in which film was inserted into the used shells of disposable cameras-and sold them to consumers. Jazz purchased Fuji cameras that had been refurbished in this manner and sold them. Jazz sold approximately 38.4 million of the Fuji cameras.

Fuji litigated before the International Trade Commission to obtain an injunction barring Jazz from refurbishing and reselling Fuji cameras. Fuji then sued Jazz and its founder, individually, for damages.

Suit alleged patent infringement. Plaintiff claimed damages for lost profits and royalties. Defendant contended that its conduct fell under the doctrine of permissible repair, which allows a product's owner to repair a product without infringing upon the patent holder's rights.

A jury awarded $25 million. Of that amount, $3.5 million was for lost profits and $21 million-representing 56 cents for each of the Fuji cameras Jazz had sold-was for lost royalties. Defendant has filed a motion for judgment notwithstanding the verdict.

Plaintiff's experts were Alfred Bellows, mechanical engineering, Wayland, Mass., and Andrew Carter, damages, Chicago, Ill. Defendant's expert was Marion Stewart, damages, White Plains, N.Y.

Plaintiffs Counsel

*Lawrence Rosenthal,

Matthew W. Siegal, and

Lisa Rudden, all of New York, N.Y.

Robert J. Rohrberger, Livingston, NJ.