BIC Leisure Products, Inc. v. Windsurfing International, Inc.
Court of Appeals for the Federal Circuit
1 F.3d 1214 (1993)
Windsurfing (plaintiff) won its patent-infringement suit against BIC (defendant) over sailboard technology, and the district court also awarded lost-profit damages. Windsurfing sold in the upper-to-mid price range, while BIC targeted entry-level buyers with sailboards priced $200 to $300 lower. Notably, Windsurfing's own sales did not increase even after BIC was enjoined from selling its infringing product, suggesting BIC's former customers moved to other similarly priced, non-infringing alternatives rather than to Windsurfing's pricier boards. BIC appealed the lost-profits award.
Whether lost-profit damages can be properly awarded to a patent owner when the accused infringer sold its product to a different market segment than the patent owner.