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LG ELECTRONICS v. ADVANCE CREATIVE COMPUTER CORP.

July 25, 2002

LG ELECTRONICS, INC., PLAINTIFF,
V.
ADVANCE CREATIVE COMPUTER CORP. AND DTK COMPUTER, INC., DEFENDANTS.



The opinion of the court was delivered by: Wilken, District Judge.

ORDER ADOPTING REPORT AND RECOMMENDATION ON PLAINTIFF'S MOTION FOR DEFAULT JUDGMENT

In its first amended complaint, Plaintiff LG Electronics, Inc. (LGE) alleged that Defendant Advance Creative Computer Corp. (ACC) and its wholly owned subsidiary DTK Computer, Inc. (DTK) infringed six of Plaintiffs' patents. Default was entered against ACC on October 11, 2001 and against DTK on November 13, 2001. Plaintiff filed a motion for default judgment on December 17, 2001. That motion was referred to a magistrate judge for a report and recommendation.

On April 12, 2002, the magistrate judge filed a Report and Recommendation on Plaintiffs Motion for Default Judgment (Report). The Report recommended enjoining Defendants from future infringement of Plaintiffs patents, but did not identify specific ACC and DTK products in the recommended injunction. In addition, the magistrate judge held that Plaintiff had not provided sufficient evidence to justify its request for $12,060,000 in damages. On April 26, 2002 Plaintiff objected to the Report and moved for an award of damages against defaulting Defendants and to enjoin Defendants from infringing specific products.

LGE's objection to the Report and Recommendation — with respect to both the damage calculation and the scope of the recommended injunction — is based on its contention that the magistrate judge erred in refusing to credit Defendants' failure to respond to LGE's requests for admissions. For the reasons stated in the Report, that objection is overruled (Docket #107). The Court adopts Magistrate Judge Laporte's Report and Recommendation (Docket #58) and enters default judgment accordingly.*fn1

This Court having previously entered default against Defendant Advance Creative Computer Corp. (ACC) for failure to answer the First Amended Complaint duly served upon ACC by Plaintiff LG Electronics, Inc. (LGE), and against Defendant DTK Computer, Inc. (DTK) for failure to obey a pretrial scheduling order, failure to appear at a scheduling conference, failure to participate in a scheduling conference in good faith, and/or failure to otherwise defend this action and LGE having applied to this Court for the entry of default judgment,

IT IS ORDERED that:

1. ACC and DTK have infringed United States Patent Nos. 4,918,645; 4,926,419; 4,939,641; 5,077,733; 5,379,379; 5,892,509.

2. ACC and DTK, their officers, agents, servants, employees and those persons in active concert or participation with them, during the period commencing upon the date of entry of this default judgment and for the remainders of the respective terms of each of the patents-in-suit, are hereby enjoined and restrained from making, using, offering for sale, or selling in or importing into the United States any computer system that infringes the patents-in-suit, or contributing to such infringement or inducing others to do so.

3. LGE has not established that it is entitled to any damages from ACC or DTK for infringement of the patents in suit.

REPORT AND RECOMMENDATION ON PLAINTIFF'S MOTION FOR DEFAULT JUDGMENT

INTRODUCTION

Upon consideration of the parties' oral arguments and their submissions, good cause appearing, and for the reasons set forth below, the following is the Court's Report and Recommendation to the Honorable Claudia Wilken on a motion for default judgment filed by plaintiff LG Electronics Incorporated ("LGE") against defendants Advanced Creative Computer Corporation ("ACC") and DTK Computer Incorporated ("DTK").

FACTS

LGE's First Amended Complaint alleges that ACC and DTK are infringing six different patents owned by LGE:

1. United States Patent No. 4,918,645, entitled "Computer Bus Having Page Mode Memory Access.

2. United States Patent No, 4,926,419, entitled "Priority Apparatus."

3. United States Patent No. 4,939,641, entitled "Multi-Processor System with Cache Memories."

4. United States Patent No. 5,077,733, entitled "Priority Apparatus Having Programmable Node Dwell Time."

5. United States Patent No. 5,379,379, entitled "Memory Control Unit With Selective Execution of ...


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