Velox Enterprises Inc. v. Jimray Technology Inc., et al.
Published: Mar. 21, 2004 | Result Date: Dec. 15, 2003 |Case number: SACV03480JVS Verdict – $2,839,880
Facts
The plaintiff Velox Enterprises Inc. brought suit against the defendants Jimray Technology Inc. Progauges Co. Ltd., and Hiper Industries Inc. for trademark and tradedress infringement under the Lanham Act, breach of contract, fraud and unfair competition. Velox, a California company, requested Jimray/Progauges, Taiwanese companies, to manufacture and sell certain automobile gauges per its specifications, and Jimray/Progauges agreed to so manufacture and sell those gauges. The gauges were to bear the name of "Chameleon" because their faces were to change colors in unison and automatically as the RPM's of the engine increased. Velox paid Jimray/Progauges half the costs associated with setting up the manufacturing process. Jimray/Progauges sent samples of the gauges to Velox who tested them and advertised them in magazines and at a trade show. Velox also began taking orders for the gauges. Thereafter, Jimray/Progauges refused to deliver the gauges to Velox and instead delivered the gauges to one of Velox's competitors in California, Hiper.
Settlement Discussions
The last demand before trial was $300,000; the last offer made by the defendants before trial was $20,000.
Damages
Velox claimed $2.89 million for lost profits; $70,401 for disgorgement of the defendant's profits, plus trebling.
Result
The jury found that Jimray/Progauges breached its contract with Velox and that all defendants willfully infringed on Velox's Chameleon mark. The jury found against Velox as to velox's claims for fraud and trade dress infringement. As to Jimray/Progauges, Velox was awarded $2,687,436 in compensatory and statutory damages under the Lanham Act, which included the trebled amount of profits earned by Jimray/Progauges on the sale of the gauges to Hiper; as to Hiper Industries, Inc. Velox was awarded $152,448 in compensatory and statutory damages which also included the trebled amount of the profits earned by Hiper on the sale of the gauges. Velox also included the trebled amount of the profits earned by Hiper on the sale of the gauges. Velox also obtained a permanent injunction against the defendants, prohibiting them from using the Chameleon mark and was awarded costs in the amount of $13,169 and attorney's fees in the amount of $123,526. Jimray recovered nothing on its cross-complaint against Velox.
Other Information
Jimray/Progauges' motion for a new trial, or alternatively for remittitur, was denied and their time to appeal expired.
Deliberation
two days
Poll
8-0 (in favor of plaintiff)
Length
seven days
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