Jenner & Block

After Trial Loss, Hetronic’s Former Business Partner Faces $10,000-a-Day Penalty

On June 2, 2020, the court granted the motion of firm client Hetronic to hold defendants in contempt for violating the worldwide permanent injunction, imposing a $10,000-a-day penalty for relaunching a sales website entered after those defendants lost a $112 million trial to firm client Hetronic.

Hetronic, which makes radio control systems, sued Abitron Germany and affiliated companies for the breach of contract, trademark infringement, unfair competition and other torts.

In March, a federal jury in the Western District of Oklahoma returned almost $114 million verdict in favor of Hetronic.  In April, a judge granted Hetronic a worldwide injunction that protected its trademark, products trade dress and product names.  The injunction also ordered the defendants to destroy all infringing products within 21 days and return all of Hetronic’s confidential information.

In his June ruling, US District Judge Stephen Friot held that Abitron Germany and affiliated companies and a principal committed “clear and convincing” continuing infringement and other violations of the injunction.

The judge ordered the defendants to pay a $10,000-a-day “coercive penalty,” which will rise to $15,000 per day at the start of July and $20,000 at the start of August, until they take down the sales website.

Partners Debbie L. Berman and Wade A. Thomson lead the team representing Hetronic.