SAN DIEGO (AFX) - A jury awarded Nortel Networks Corp. $47.4 million in punitive damages in a copyright infringement case against telecommunications retailer Platinum Networks and its president.
Nortel, which is based in Ontario, Canada, sued San Diego-based Platinum in 2004 alleging the company had stolen software that unlocks certain premium features in Nortel's phone systems.
Nortel claimed Platinum and its president, Gerald Medina, then bought less expensive phone systems from Nortel, unlocked the features using the 'Genkey' software, and resold them for premium prices.
In a split verdict delivered May 26, the jury found in favor of Nortel on a claim of copyright infringement, but not on a claim that Platinum and Medina stole trade secrets. The jury also found in Platinum's favor on several other claims.
The jury awarded Nortel $6,000 in compensatory damages from Platinum and none from Medina after Nortel had asked for damages of more than $100 million.
On Thursday, the jury found that Medina should pay $5 million in punitive damages, while Platinum should pay $42.4 million.
U.S. District Court Judge Irma Gonzalez scheduled a hearing so Platinum and Medina can submit a motion to throw out the award.
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© 2006 AFX News
