A San Diego jury has awarded Nortel Networks Corp. $47.4 million in punitive damages in a copyright infringement case brought against telecommunications retailer Platinum Networks and its president. Canadian based Nortel sued San Diego-based Platinum in 2004, alleging that the company had stolen software that unlocks certain premium features in Nortel's phone systems.
essentially Nortel claimed that Platinum and its president, Gerald Medina, bought less expensive phone systems from Nortel, unlocked the features using the "Genkey" software, and resold them for premium prices.
In a verdict delivered on May 26, the jury ruled in favour of Nortel regarding their claim of copyright infringement, but threw out their claim that Platinum and Medina stole trade secrets. The jury also found in Platinum's favor on several other claims.
The jury awarded Nortel a mere $6,000 (€4,682) in compensatory damages from Platinum and none from Medina after Nortel had asked for damages of more than $100 million. However, 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 has now scheduled a hearing to allow Platinum and Medina to submit a motion to throw out the award.
