Blueradios, Inc. V. Kopin Corporation, Inc

On April 22, 2024, the Colorado jury awarded damages worth $23,811,493 to Plaintiff BlueRadios, Inc. for, inter alia, breach of contract, unjust enrichment, and misappropriation of trade secrets by Kopin Corporation, Inc.

Case Background

On August 12, 2016, BlueRadios, Inc. filed a breach of contract lawsuit against Kopin Corporation, Inc. before the United States District Court, Colorado (Denver). Judge John L. Kane presided over this case. [Case number: 1:16cv2052]

Cause

BlueRadios, a company specializing in wireless communications, collaborated with Kopin Corporation in a joint venture initiated in early 2006. Kopin, known for consumer micro-displays, approached BlueRadios after signing a non-disclosure agreement. Demonstrating their proprietary technology in April 2006, BlueRadios showcased wireless video streaming from mobile devices to micro-displays, impressing Kopin executives including CEO John Fan.

Following this demonstration, Kopin requested BlueRadios to develop a comprehensive wireless design solution, previously outside Kopin’s expertise. In response, BlueRadios submitted a detailed proposal titled “Golden-i Wireless Video Design Solution” in May 2007, outlining specific objectives for hardware and software development. Kopin accepted this proposal, leading to a formal Contract executed later that month by Kopin’s Chief Financial Officer.

Under the Contract, BlueRadios engaged in extensive research, development, and engineering to fulfill its obligations. Kopin supported these efforts with a monthly retainer and ratified the agreement in October 2008 through a Contract Addendum, modifying royalty terms and granting BlueRadios additional marketing rights.

Throughout their collaboration, joint innovations resulted in several patent applications, reflecting the technological advancements achieved by both parties. However, tensions arose when Kopin allegedly failed to disclose the commercialization of products incorporating BlueRadios’ technology fully. This discrepancy prompted investigations and subsequent claims by BlueRadios regarding intellectual property rights violations by Kopin.

The relationship between BlueRadios and Kopin, once promising, deteriorated amid disputes over technology ownership and commercialization practices. These issues culminated in legal actions initiated by BlueRadios, alleging unauthorized use and disclosure of their proprietary technology by Kopin.

Damages

As a result of Kopin’s breach of contract, BlueRadios suffered damages that were to be proven at trial. Additionally, due to Kopin’s breaches of the covenant of good faith and fair dealing, BlueRadios sustained monetary damages. BlueRadios was also eligible to seek punitive damages because Kopin deliberately and willfully engaged in actions showing a conscious disregard for BlueRadios’ rights, including withholding royalty payments. Kopin’s unlawful actions caused commercial harm to BlueRadios. Furthermore, BlueRadios experienced and continued to endure irreparable harm due to Kopin’s unlawful actions. BlueRadios was entitled to injunctive relief, damages, and attorney fees under C.R.S. Sections 7-74-103, 104, and 105 as a result of Kopin’s behavior. If not preliminarily and permanently enjoined, Kopin’s actions would have caused ongoing irreparable harm to BlueRadios.

Key Arguments and Proceedings

Legal Representation

  • Plaintiff: BlueRadios, Inc
    • Counsel for Plaintiff: David Brian Seserman | Joseph E. Kovarik | Lena Streisand | Shavon M. Henry | Stanley Martin Gibson
  • Defendant: Kopin Corporation, Inc
    • Counsel for Defendant: Alexander H. Loomis | Derek L. Shaffer | Ehsun Forghany | Harvey Bartle, IV | Joshua M. Dalton | Julie Sarah Goldemberg | Kandis C. Gibson | Kathryn Ann Feiereisel | Mark Stephen Peloquin | Stephen B. Rotter | Steven C. Cherny

Claims

Plaintiff claimed that Kopin had breached the Contract and Contract Addendum by failing to pay BlueRadios the amounts owed, including royalties from Golden-i product sales. Additionally, it was alleged that Kopin mishandled the prosecution of patent applications under the Contract, potentially misidentifying inventors and inaccurately claiming ownership. BlueRadios claimed that Kopin’s actions violated the covenant of good faith and fair dealing, breached fiduciary duties, misappropriated trade secrets under Colorado state law and the Defend Trade Secrets Act, and unjustly enriched itself by using confidential information obtained through the Contract and Mr. Parkinson’s employment at BlueRadios. These actions allegedly resulted in unjust gains for Kopin, necessitating an accounting of profits owed to BlueRadios. Additionally, BlueRadios sought correction of inventorship on several patent applications to accurately reflect its employees’ contributions.

Defense

Kopin contested that Plaintiff was not entitled to any relief from them. They raised affirmative defenses and requested a judgment in their favor against Plaintiff

Jury Verdict

On April 22, 2024, the Colorado jury found in favor of BlueRadios, Inc. They held that Defendant had breached the contract by substantial wrongdoing. Accordingly, the jury awarded $5,114 in general damages and $3.5 million in disgorgement damages for the breach of contract.

The jury also held that the Defendant had breached the implied covenant of good faith and fair dealing. Therefore, $600,000 was awarded in general damages and $7.2 million in disgorgement damages.

Additionally, $591,660 was awarded as unjust enrichment damages. Moreover, $1,183,321 was awarded as exemplary damages.

$3,910,466 was awarded as damages for the misappropriation of trade secrets and $7,820,932 was awarded as exemplary charges. Thus, the total damages awarded to Plaintiff was $23,811,493.

Court Documents:

Available upon request