A Tarrant County jury determined Monday that Plano-based CommTech Sales unlawfully used Fort Worth telecom company XIP LLC’s trademarks and trade secrets and awarded damages that could total $31 million.
In the unanimous verdict, which jurors reached after a 10-day trial, they ordered CommTech to pay XIP $2 million in lost royalties, between $12 million and $21 million in profits from infringed sales and $8 million in punitive damages. XIP’s lawyers plan to ask the court to enter final judgment awarding the maximum amount, $31 million, based on the jury’s findings.
“This verdict shows you can’t infringe on another company’s intellectual property rights and expect to get away with it,” said XIP lead attorney Derrick Boyd of Decatur litigation boutique Boyd, Powers & Williamson. “We are grateful for the jurors’ attention in this case and their decision in favor of our client.”
Greg Marcum of Marcum PC, who represented CommTech at trial, told The Texas Lawbook that the multimillion-dollar verdict was the outcome of many pieces of critical evidence not being presented before the jury.
“The client is very disappointed from a legal perspective,” said Marcum, whose practice includes offices in Dallas and Houston. “We respect the jury’s verdict but the jury did not have the full information necessary to make a good decision.”
He said that his client will appeal the verdict.
XIP filed suit against CommTech in 2013, claiming CommTech and its former owner, Michael McGraw, unlawfully used proprietary generator interface technology that was developed by Micrin Technologies and later acquired by XIP. Telecom companies including AT&T use the trademarked MTC technology to provide alternative sources of power during electrical outages caused by extreme weather and other unforeseen events.
The MTC products at issue in the case were developed by engineer and XIP president Mark Henderson, who testified at trial as XIP’s corporate representative.
“Intellectual property laws are vital for engineers and developers like us,” he said. “This verdict allows XIP to continue to use this proprietary technology free from unfair competition.”
The case was tried in Tarrant County’s 348thjudicial district. Distict Judge Mike Wallach presided over the trial.
In addition to Boyd, XIP’s legal team from Boyd, Powers & Williamson included Allen Williamson and Jesse King. The trial team also included Fort Worth attorney Brian Stagner of Kelly Hart & Hallman.
The cause number is 348-267268-13.