State Industries, Inc., Plaintiff/cross-Appellant v. Mor-Flo Industries, Inc. And American Appliance Mfg. Corp.
Court of Appeals for the Federal Circuit
1Opinion of the Court
OPINION
MAYER, Circuit Judge.
Mor-Flo Industries, Inc. and its subsidiary, American Appliance Manufacturing Corporation (Mor-Flo), infringed State Industries, Inc’s. (State) Patent No. 4,447,377, covering a method of insulating water heaters with foam. State Indus, v. Mor-Flo Indus., 639 F.Supp. 937, 231 USPQ 241 (E.D. Tenn.1986), aff'd, 818 F.2d 875 (Fed.Cir.1987). After the damages trial, the district court awarded State lost profits on approximately 40% of Mor-Flo’s infringing sales and a royalty of 3% on the remaining 60%. It concluded that Mor-Flo’s infringement was not willful and denied…
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