Ssi Technologies, Llc V. Dongguan Zhengyang Electronic Mechanical Ltd

Case Background

On January 9, 2020, Plaintiff SSI Technologies, LLC filed a patent infringement lawsuit in the United States District Court, Wisconsin Western (Case number:  3:20cv19). This case was assigned to District Judge James D. Peterson and referred to  US Magistrate Judge Anita Marie Boor.

Cause

SSI Technologies, LLC (SSI), a Wisconsin-based company, filed a patent infringement lawsuit against KUS Dongguan Zhengyang Electronic Mechanical LTD (KUS), a Chinese company. SSI alleged that KUS manufactured, sold, imported, and used DEF quality sensors that directly infringed U.S. Patent No. 9,535,038. The patent protected technology designed to minimize aeration interference in ultrasonic fluid sensing systems. SSI claimed KUS marketed and displayed the infringing products, including at the Integer Emissions Summit in Indianapolis. These actions allegedly introduced KUS’s products to the U.S. market and created competition with SSI’s patented technology.

Injuries

SSI argued that KUS’s patent infringement directly undermined its competitive market advantage. KUS’s DEF sensors competed directly with SSI’s patented products, causing market loss and damaging SSI’s reputation as a leader in sensor technology. SSI further claimed that KUS ignored its prior notifications of infringement, worsening the harm to its business operations.

Damages

SSI suffered significant monetary losses due to KUS’s alleged patent infringement. These losses included diminished market share, lost profits, and reputational harm within the industry. Additionally, SSI incurred legal and investigative costs while addressing KUS’s infringing actions. The ongoing infringement also threatened SSI’s ability to sustain its market position.

Key Arguments and Proceedings

Legal representation

  • Plaintiff(s): SSI Technologies, LLC
    • Counsel for Plaintiff: Joshua Ryan Gray | Melanie J. Reichenberger | S. Edward Sarskas | Kenneth M. Albridge | Shane A. Brunner
  • Defendant(s): Dongguan Zhengyang Electronic Mechanical LTD
    • Counsel for Defendants: Boyd Cloern | Joseph Kuo | Veronica McCarty | Christopher Alan Suarez | Courtland C. Merrill | Kelly Eberspecher | Lauren A. Degnan | Michael John Pollock 

Claims

SSI asserted that KUS’s actions constituted willful patent infringement under U.S. patent laws, specifically 35 U.S.C. § 271. Further, SSI requested an injunction to stop KUS from continuing the infringement of its ‘038 patent. Plaintiff also sought compensatory damages, enhanced damages for willful infringement, and legal fee reimbursement under 35 U.S.C. §§ 284 and 285.

Defense

Dongguan Zhengyang Electronic Mechanical LTD (DZEM) denied SSI’s patent infringement allegations, calling the claims baseless and without merit. DZEM argued that its DEF quality sensors did not infringe U.S. Patent No. 9,535,038. The company stated that its sensors used a rubber cover instead of the patented mesh structure.

DZEM also accused SSI of failing to present substantive evidence, such as claim charts, to support its patent infringement allegations. Additionally, DZEM argued that SSI contacted potential DZEM customers and issued infringement notices to harm its business relationships intentionally.

DZEM further claimed that the ‘038 patent was invalid. The company alleged that the patent lacked novelty and was obvious under 35 U.S.C. §§ 102 and 103. DZEM also accused SSI of engaging in sham litigation aimed at suppressing competition.

Jury Verdict

On October 3, 2024, the jury found that DZEM infringed U.S. Patent No. 9,535,038, resulting in significant financial losses for SSI. The jury determined that SSI lost $14,261,440.00 in profits due to DZEM’s infringing sales. For additional infringing sales outside the scope of lost profits, the jury awarded a reasonable royalty of $20.00 per unit, totaling $2,376,920.00.

Court Documents:

Documents are available for purchase upon request at jurimatic@exlitem.com