Texas Judge Enters $26.5M Final Judgment in XIP Trade Dress Infringement Case

2019-06-28T12:56:58-05:00June 28th, 2019|News|

Plano-based CommTech assessed $8M in punitive damages

FORT WORTH, Texas – A judge has awarded a $26.5 million judgment to Fort Worth-based telecom company XIP LLC in a trade dress and trade secrets suit, upholding a May jury verdict against CommTech Sales LLC of Plano.

In the final judgment entered June 25, Tarrant County District Judge Mike Wallach awarded damages on behalf of XIP stemming from the jury’s finding that CommTech Sales and co-owner and operator Michael McGraw had unlawfully used XIP’s trade dress and trade secrets.

Monetary damages assessed to Commtech include $2.01 million in lost royalties; $10.16 million in damages from unfair competition and infringing use of trade dress; $3.93 million in prejudgment interest; and $8.07 million in punitive damages. Mr. McGraw was assessed damages of $1.75 million in lost royalties and $568,000 in prejudgment interest.

The lawsuit centered on claims that 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 technology to provide alternative sources of power during electrical outages. In reaching their verdict, jurors agreed that CommTech and Mr. McGraw engaged in unfair competition, trademark infringement, and misappropriation of trade secrets.

“This judge presided over a complex dispute and made sure that jurors were presented with all of the information necessary to make a fair determination,” said XIP attorney Derrick Boyd of Boyd, Powers & Williamson. “We are pleased that his final judgment awards the damages we sought to compensate XIP for the harm the company suffered.”

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 XIP 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.

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