Following our previous report, the U.S. Supreme Court held in WesternGeco LLC v. ION Geophysical Corp. that WesternGeco, the patent owner, can recover lost foreign profits as a result of ION’s infringement under §271(f)(2) of the Patent Act. WesternGeco LLC v. Ion Geophysical Corp., U.S., No. 16-1011, 6/22/18. Justice Thomas delivered the majority opinion in the 7-2 decision.
Over ION’s objection that the lost-profit damages occurred outside of the United States and the foreign conduct after ION’s infringement was necessary to give rise to the infringement, Justice Thomas wrote that awarding lost-profit damages under the circumstances was a domestic application, and therefore, consistent with the presumption against extraterritoriality that presumes federal statutes apply within the U.S.