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UPDATE:Appeals Court Orders New Trial In Golf-Ball Patent Case
A federal appeals court Friday threw out a 2007 jury verdict against the Fortune Brands Inc. (FO) unit that makes Titleist golf balls, ordering a new trial on patent infringement charges brought by rival Callaway Golf Co (ELY).
The U.S. Court of Appeals for the Federal Circuit also lifted a court injunction that barred Fortune's Acushnet Co. from selling the popular brand of Titleist high-end golf balls at issue in the case.
The dispute centered on Callaway's claims that Titleist's Pro V1 line of golf balls infringed several of its patents.
The appeals court said there were genuine issues of fact that needed to be reconsidered by the trial judge in the case.
The Federal Circuit also said the jury's verdicts on the Callaway patents were "irreconcilably inconsistent" because jurors found one patent claim invalid but concluded that other similar claims were valid.
The dispute is part of a broader legal fight between Callaway and Acushnet for power in the golf-ball market.
Acushnet's Titleist Pro V1 ball, first introduced in 2000, has been the industry's top seller for several years, amassing nearly $2 billion in sales, according to court documents. The company says the ball is the most played model by professional golfers.
In the wake of the patent case, Acushnet said it modified its Pro V1 line to work around Callaway's patents and it began offering a new version of the balls this year. A federal judge in Delaware who oversaw the patent trial barred Acushnet from selling the prior version as of Jan. 1, 2009.
Callaway, however, says the new line of Titleist balls still infringe some of its patents. - The latest chapter in the fight came in March, when the companies filed new dueling patent infringement lawsuits against each other. Callaway continues to challenge the Pro V1 line, while Acushnet argues that Callaway's Tour i golf balls, played by the likes of Phil Mickelson and Ernie Els, infringe its patents.
Acushnet spokesman Joe Gomes said Friday's court decision "is very good news" and supports the company's position that Callaway's patents are invalid. Callaway spokeswoman Michele Szynal said the company was studying the ruling and had no further comment.
The case is Callaway Golf Co. v. Acushnet Co., 2009-1076.
A federal appeals court Friday threw out a 2007 jury verdict against the Fortune Brands Inc. (FO) unit that makes Titleist golf balls, ordering a new trial on patent infringement charges brought by rival Callaway Golf Co (ELY).
The U.S. Court of Appeals for the Federal Circuit also lifted a court injunction that barred Fortune's Acushnet Co. from selling the popular brand of Titleist high-end golf balls at issue in the case.
The dispute centered on Callaway's claims that Titleist's Pro V1 line of golf balls infringed several of its patents.
The appeals court said there were genuine issues of fact that needed to be reconsidered by the trial judge in the case.
The Federal Circuit also said the jury's verdicts on the Callaway patents were "irreconcilably inconsistent" because jurors found one patent claim invalid but concluded that other similar claims were valid.
The dispute is part of a broader legal fight between Callaway and Acushnet for power in the golf-ball market.
Acushnet's Titleist Pro V1 ball, first introduced in 2000, has been the industry's top seller for several years, amassing nearly $2 billion in sales, according to court documents. The company says the ball is the most played model by professional golfers.
In the wake of the patent case, Acushnet said it modified its Pro V1 line to work around Callaway's patents and it began offering a new version of the balls this year. A federal judge in Delaware who oversaw the patent trial barred Acushnet from selling the prior version as of Jan. 1, 2009.
Callaway, however, says the new line of Titleist balls still infringe some of its patents. - The latest chapter in the fight came in March, when the companies filed new dueling patent infringement lawsuits against each other. Callaway continues to challenge the Pro V1 line, while Acushnet argues that Callaway's Tour i golf balls, played by the likes of Phil Mickelson and Ernie Els, infringe its patents.
Acushnet spokesman Joe Gomes said Friday's court decision "is very good news" and supports the company's position that Callaway's patents are invalid. Callaway spokeswoman Michele Szynal said the company was studying the ruling and had no further comment.
The case is Callaway Golf Co. v. Acushnet Co., 2009-1076.
