VerdictSearch California Reporter
United States District Court, N.D. California
Kyphon Inc. v. Lenny C. Phan
No. 3:07-cv-04295-JL
Judge James Larson entered a consent judgment, in which Phan stipulated that he infringed Kyphon's patents, breached the proprietary information agreement and committed conversion. Phan was permanently enjoined from infringing the patents. Under the consent judgment, Phang agreed to pay $120,000.
Plaintiff Kyphon Inc. of Sunnyvale is a manufacturer of kyphoplasty surgical equipment.
Lenny Phan, a Kyphon employee from April 2000 to March 2005, signed a propriety information agreement upon commencing his employment in 2000. The agreement contractually bound Phan from disclosing any of the company's confidential information. On Feb. 28, 2005, after tendering his resignation effective March 1, Phan agreed that he would preserve confidential trade secrets and knowledge of Kyphon.
Kyphon alleged that Phan used Kyphon's confidential information to manufacture and sell inflatable bone tamps (IBTs) and IBT-related components.
Claiming willful infringement, breach of contract and conversion, Kyphon sued Phan. Plaintiff's counsel argued that Phan infringed three of Kyphon's patents: '544, issued in August 2003; '505, issued September 2003; and '341, issued December 2005.
Plaintiff's counsel argued that during his employment with Kyphon, Phan knowingly and intentionally converted parts of Kyphon's bonding and balloon machines and other components used to manufacture products by removing them from Kyphon's facility. Phan then used the materials to manufacture kyphoplasty devices for another company without Kyphon's consent.
