Fort Worth Telecom Business Wins Multimillion Dollar Jury Verdict in Trade Secret Dispute

2019-05-07T14:14:12-05:00May 7th, 2019|News|

Award could reach as high as $31M for XIP, including $8M in punitive damages secured by Boyd, Powers & Williamson

FORT WORTH – A Tarrant County jury returned a verdict for Fort Worth-based telecom company XIP LLC after finding that CommTech Sales LLC of Plano unlawfully used XIP’s trademarks and trade secrets.

The May 6 verdict includes damages from infringed sales and lost royalties caused by CommTech Sales and its former owner Michael McGraw.

The final judgment will be determined by the Court based on the jury’s findings, which include lost royalties of approximately $2 million, profits from CommTech Sales ranging from $12 million to $21 million, and punitive damages of $8 million. Lawyers for XIP will seek judgment in excess of $30 million based on the jury’s findings.

According to the lawsuit, CommTech and Mr. McGraw unlawfully used proprietary generator interface technology, which was developed by Micrin Technologies and later acquired by XIP. Telecom companies including AT&T use the trademarked MTC technology to provide alternative sources of power during electrical outages caused by extreme weather and other unforeseen events.

“This verdict shows you can’t infringe on another company’s intellectual property rights and expect to get away with it,” said XIP attorney Derrick Boyd of Boyd, Powers & Williamson. “We are grateful for the jurors’ attention in this case and their decision in favor of our client.”

Attorneys from Boyd, Powers & Williamson presented evidence that CommTech misappropriated the MTC trademark, as well as industrial designs and trade secrets. Following a 10-day trial, jurors found that the defendants had engaged in unfair competition, trademark infringement, trade dress infringement and misappropriation of trade secrets.

“Intellectual property laws are vital for engineers and developers like us,” said Mark Henderson who developed the MTC products at issue in the case. “This verdict allows XIP to continue to use this proprietary technology free from unfair competition.”

The case is XIP LLC v. Michael McGraw; CommTech Sales, LLC, et al., Cause No. 348-267268-13 in the 348th Judicial District in Tarrant County. In addition to Mr. Boyd, the trial team included Allen Williamson and Jesse King of Boyd, Powers & Williamson, and Brian Stagner of Fort Worth-based Kelly, Hart & Hallman.

Boyd, Powers & Williamson represents clients in commercial disputes, including litigation against banks and financial institutions for fraud, breach of contract and other wrongdoing. The trial team represents individuals in catastrophic injury litigation, including trucking, motor vehicle and construction accidents, as well as injuries caused by dangerous products. For more information, visit https://www.bpwlaw.com/.

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