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Failure to Contest Waives Damages Arguments Resulting in Full Profit Award

By R. David Donoghue on September 30, 2026
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GZ Long Ya Trading Co., Ltd. v. The Partnerships and Unincorporated Associations Identified on Schedule “A” (Defendant Tonchean), No. 24-cv-4193, (N.D. Ill. May 29, 2026) (Holleb Hotaling, Mag. J.).

Magistrate Judge Holleb Hotaling, after granting summary judgment and a permanent injunction for plaintiff in this design patent case regarding a puzzle table, addressed damages under 35 U.S.C. § 289. Under the framework established by Samsung Electronics Co. v. Apple, Inc., 137 S. Ct. 429 (2016), the Court first identified the “article of manufacture” to which the infringed design was applied and then calculated the infringer’s total profit on that article. Plaintiff identified the infringing puzzle tables themselves as the article of manufacture and demonstrated through Wayfair sales data that defendant Tonchean sold at least 402 infringing units generating at least $55,300 in net revenue. The burden then shifted to defendant to identify an alternative article of manufacture or substantiate deductible costs, citing WMS Gaming, Inc. v. WPC Prods. Ltd., 542 F.3d 601 (7th Cir. 2008), and Mishawaka Rubber & Woolen Mfg. Co. v. S.S. Kresge Co., 316 U.S. 203 (1942). Defendant never contested the article of manufacture, proposed an alternative article, or documented any deductible costs—offering only an unverified claimed per-unit cost without supporting documentation. The Court found defendant waived the argument, citing Bonte v. U.S. Bank, N.A., 624 F.3d 461 (7th Cir. 2010), and awarded $55,300 in damages.

  • Posted in:
    Intellectual Property
  • Blog:
    Chicago IP Litigation
  • Organization:
    R. David Donoghue
  • Article: View Original Source

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