Top 10 Plaintiffs' Verdicts by Dollar: ViaSat Inc. et al. v. Space Systems/Loral Inc.

Two satellite companies went head-to-head in a complex patent infringement and breach of contract trial that saw a $283 million verdict for the plaintiffs, only for the damages award to be tossed out and whittled down in a settlement.

Carlsbad-based ViaSat Inc. alleged that Space Systems/Loral LLC incorporated its patented satellite networking communications technology into a "copycat" satellite manufactured for ViaSat's archrival, and filed patent applications that included ViaSat's confidential information.

ViaSat claimed that it had previously entered into a confidentiality agreement with Space Systems/Loral when it chose the company to manufacture its ViaSat-1 satellite.

Efforts by Space Systems/Loral's attorneys to toss out some of the infringement claims before trial failed. During the trial, ViaSat's legal team tried to simplify a complicated case about "literal rocket science" down to a story about broken trust between two companies, said Sean Pak, co-lead counsel and a Quinn Emanuel Urquhart & Sullivan LLP partner.

"What we spent a lot of time doing at trial was getting the jury to understand the history," Pak said, "to get them to meet our key witnesses and humanize and empathize with the people who built the company to see why this had a big impact."

Jurors deliberated for more than a week before determining that Space Systems/Loral infringed on ViaSat's patents and breached confidentiality agreements. ViaSat emerged victorious in April with a $283 million verdict.

In extensive post-trial motions, however, U.S. District Judge Marilyn L. Huff threw out the award and ordered a new trial to determine damages. She upheld the jury's findings of liability. ViaSat Inc. et al. v. Space Systems/Loral Inc., CV12-260 (S.D. Cal., filed Feb. 1, 2012).

Ultimately, the two companies reached a settlement, where ViaSat would receive $100 million. It also resolved a second lawsuit filed by ViaSat against Space Systems/Loral for allegedly infringing on additional patents.

Attorneys for both parties said they were pleased with the settlement's outcome.

"All and all, it settled not just the case that we tried but a wider universe of litigation between the parties, and I think that's why it was able to get done," said Jacob W. Buchdahl, a partner with Susman Godfrey LLP who represented Space Systems/Loral.

- Kylie Reynolds