Facts

Plaintiff Kyphon Inc. manufactures kyphoplasty surgical equipment. Defendant Lenny Phan signed a propriety information agreement upon commencing employment with plaintiff. Under the agreement, defendant was barred from disclosing any of plaintiff's confidential information. When defendant resigned, he agreed to preserve the company's confidential trade secrets.

The plaintiff filed suit, alleging willful infringement, breach of contract and conversion. Specifically, plaintiff claimed that defendant infringed three of its patents, which were issued in 2003 and 2005.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended that during his employment with plaintiff, defendant knowingly and intentionally converted parts of defendant's machines by removing them from company grounds. The defendant then used the materials to manufacture kyphoplasty devices for another company without plaintiff's consent.

Damages

The plaintiff claimed an unspecified sum and sought injunctive relief.

Result

A consent judgment was entered, in which defendant stipulated that he infringed plaintiff's patents, breached the proprietary information agreement and committed conversion. The judge enjoined defendant from infringing the patents. Defendant agreed to pay plaintiff $120,000.