Fujifilm is the owner of patents in the design and production of single-use, disposable cameras, or lens-fitted film packages (LFFPs).
Despite the district court's preliminary injunction enjoining the defendants from infringing, Jazz Products purchased about 1.4 million LFFPs made by Polytech and re-imported them into the US.
[1] The defendants contended that the running royalty of $2.00 per infringing LFFP and the $2.5 million lump sum are "excessive, punitive, and unsupported by substantial evidence."
Based on factors such as the defendants' dependence on a Fujifilm license, Customs excluding infringing LFFPs, and the defendants' inability to separate the infringing LFFPs from the non-infringing ones, Fujifilm demonstrated that the jury could have reached a royalty rate as high as $2.21; and a similar logic applies as well for the lump sum award.
They argued that 1) the contempt was not sufficiently supported by evidence of infringement, 2) the imported LFFPs were redesigned, and 3) Fujifilm's patent rights were terminated during the bankruptcy sale.