January 14, 2013, 12:08 PM — A San Jose federal court has permanently enjoined A10 Networks from selling server load balancers that infringe on patents belonging to competitor Brocade, underscoring $60 million of a $112 million verdict awarded to Brocade last August.
The court enjoined A10 from "making, using, selling, or offering to sell in the United States, or importing into the United States any AX series application delivery controller that includes features that infringe" on these asserted claims. A10 has also been ordered to notify all distributors, customers and third-parties that have ordered, received or purchased AX ADCs about the order within 10 business days.
A10 says existing customers and users can continue to use and receive support for their current AX products. The company also says it has completed development and testing of applicable, non-infringing elements, and will ship AX series products with the redesigned software immediately.
A10 is also appealing the jury's verdict and the damages awarded. The court denied A10's motion to vacate the liability and damages awarded on Brocade's copyright infringement claim, but noted that it granted A10's motion for a new trial on patent damages and rejected Brocade's request for a broad injunction on the basis that it "overreaches."
"The Court instead entered a narrowly-tailored injunction against certain products," A10 said in a statement. "The Court explicitly held that '[c]ustomers of A10 who have already purchased and continue to use infringing AX Series devices shall not be affected by this injunction.'"
That new trial will determine the amount of patent and punitive damages from the infringement, according to Brocade, and could make up most of the difference in the original $112 million verdict.