Endobotics, LLC v. Design Standards Corporation et al. (D. Mass. 20-cv-10742).

Endobotics sued Design Standards and Medrobotics on April 15, 2020, asserting patent infringement, trade secret misappropriation, breach of contract, and other claims.  The complaint was served on Medrobotics on April 22nd, meaning an answer or other response was due by May 13, 2020.  When Medrobotics failed to do so, Endobotics requested a notice of default on May 22nd, and the Court entered default on June 5th.  Endobotics then moved for entry of default judgment on June 25th.  Endobotics, noting its inability to take discovery as a result of Medrobotics’ failure to appear, sought to quantify damages based on publicly-available information regarding Medrobotics’ business, revenues and profits.  Endobpotics sought disgorgement of Medrobotics profits that resulted from the misappropriation of its trade secrets (and as restitution damages under the breach of contract claim and damages under the unjust enrichment, conversion, and other claims), which it estimated to be $53.2 million.

The court has now entered default judgment and awarded Endobotics the principal amount sought, trebled pursuant to c. 93A, along with prejudgment interest from the date of the filing of the complaint at a 12% rate for a whopping total judgment of $171,248,614, with post judgment interest also granted.     

This may not be the end of Medrobotics’ troubles.  Design Standards filed a crossclaim against Medrobotics, based on a clause in the contract under which Design Standards manufactured the accused product for Medrobotics.  This clause had Medrobotics warrant that it had no knowledge  of any existing intellectual property infringement, and the agreement further included an indemnification clause.  Design Standards state that Medrobotics has ignored its many written notices demanding indemnification, and brings crossclaims for indemnification and for breach of contract for thus far failing to indemnify.

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