Texas Court awarded Kaneka approximately 6 MM dollars in its Patent Infringement Lawsuit.

News Release

Texas Court awarded Kaneka approximately 6 MM dollars in its Patent Infringement Lawsuit.

KANEKA CORPORATION
November 20, 2013
Kaneka Corporation (headquarters: Osaka, Japan; President: Mr. Kimikazu Sugawara) announced today that it has WON a patent infringement lawsuit against UNO & COMPANY, LTD. a South Korean Corporation, JBS HAIR, INC. a Georgia Corporation and Jinny Beauty Supply Company, Inc., a Texas Corporation in the United States District Court for the Northern District of Texas on November 5, 2013 (CST). In this lawsuit, Kaneka accused the defendants of infringing two of Kaneka’s U.S. patents, 7,759,429 and 7,759,430, relating to flame-retardant polyester fibers for artificial hair, and won a jury verdict in its favor. Pursuant to the jury verdict, the court issued its final judgment awarding Kaneka approximately 6 million dollars for its past lost profit and royalty damages.

1. Defendants
UNO & COMPANY, LTD. a South Korean Corporation (“UNO”)
JBS HAIR, INC. a Georgia Corporation (“JBS Hair”)
Jinny Beauty Supply Company, Inc., a Texas Corporation (“Jinny Beauty Supply”)

2. History of the lawsuit
July 20, 2010: Kaneka filed a complaint
June 28. 2013: Kaneka won a jury verdict in its favor.
Outline of the jury verdict
i. Kaneka has proved 11 products sold by JBS Hair and Jinny Beauty Supply are infringing its U.S. patent 7,759,429 (“‘429 patent”).
ii. Kaneka has proved 1 product sold by JBS Hair and Jinny Beauty Supply is infringing its U.S. patent 7,759,430 (“‘430 patent”).
iii. Kaneka has proved UNO induced JBS Hair or Jinny Beauty Supply to infringe ‘429 patent and ‘430 patent.
iv. Kaneka has proved UNO induced several hair products importers to infringe ‘429 patent with respect to 8 products.
v. Defendants failed to prove that Kaneka’s patents are invalid.
vi. Kaneka has proved that UNO caused damages of $ 5,500,000 related to Kaneka’s lost profits.
vii. Kaneka has proved that Kaneka is entitled to a royalty rate of 10% for remaining sales of infringing products against UNO, JBS Hair and Jinny Beauty Supply.
November 5, 2013: The court issued its final judgment.

3. Outline of the final judgment
1) Kaneka is awarded totally $ 5,845,000 in lost profit damages and in damages as 10% royalties against UNO.
2) Kaneka is awarded $58,000 in damages as 10% royalties against Defendant JBS Hair.
3) Kaneka is entitled to an accounting from UNO, JBS Hair and Jinny Beauty Supply to assess further royalty damages due to infringing sales from January 1, 2013 to November 5, 2013.
4) Kaneka is awarded costs of Court.

4. Future prospects
Defendants have right to appeal the judgment to United States Court of Appeals for the Federal Circuit (CAFC).

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