Erise IP’s client, Garmin International, won an arbitration with PhatRat and, in a rare move, was also awarded attorney fees. Johnson County, Kansas District Court Judge Charles Droege confirmed the arbitration award on December 9.
The matter dates back to 2006 when PhatRat sued Garmin, alleging three of Garmin’s GPS (global positioning system) devices infringed on PhatRat patents. The parties settled pursuant to a settlement and patent license agreement. Then in 2014, Garmin sought arbitration of that agreement, and PhatRat brought a claim in arbitration against Garmin for breach of contract, arguing Garmin’s sale of certain products violated the settlement and patent license agreement. PhatRat demanded nearly $30 million.
In August 2015, an arbitrator ruled in favor of Garmin. The decision stated that Garmin’s products identified by PhatRat do not breach the 2006 agreement. Further, the ruling said PhatRat failed to meet its burden of proof regarding the damages element of its breach of contract claim. In addition, the ruling ordered PhatRat to pay Garmin’s attorney fees and costs in the matter.
Erise IP Shareholders Megan Redmond and Adam Seitz and Associate Carrie Bader represented Garmin in the case.