Federal Court Awards Sanctions to LMK Enterprises Inc. in Contempt Action

On March 9, 2012, the Federal District Court for the Middle District of Florida awarded LMK Enterprises, Inc. a total of $734,419.35 in sanctions, fees, and costs in a contempt action associated with the infringement of U.S. Patent 6,039,079, according to a company press release. The award stems from a federal court ruling dating back to September 2010, finding that a competing company’s lateral lining system infringed LMK’s patent rights and was in violation of an injunction previously entered by the court.

LMK initially filed suit against the company in 2008 for infringement of U.S. Patent 6,039,079. After it was admitted that the competing lateral system infringed the valid patent, the court entered an injunction to prohibit further acts of infringement. In November 2009, LMK asked the court to enforce the injunction and find that continued sale of the competing system was in violation of the injunction despite claims that the product had been modified so that it did not infringe on the patent.

On Sept. 30, 2010, the Federal District Court for the Middle District of Florida entered a contempt order, finding that sales of both the original and modified versions of the competing system were in violation of the injunction. The same court entered an award of sanctions including costs and fees in the amount of $734,419.35 to LMK on March 9, 2012. Still pending before the same Court is LMK’s claim to recover damages.

“We were especially pleased with the court’s award of attorney’s fees and costs,” said LMK founder and president Larry Kiest in the release. “We have worked hard to promote and protect our patented technology in the industry, and we are very gratified and pleased with this court’s award. LMK is focused on making the world a cleaner, greener place through technological innovation. The patent system gives LMK the opportunity to share our technological contributions with the world.”

LMK Enterprises is a technology provider for renewing underground pipelines without excavation or disruption to traffic and the environment by deploying a structural lining within a pipeline in accordance with ASTM F2561-06: “Standard Practice for Rehabilitation of a Sewer Service Lateral and Its Connection to the Main Using a One Piece Main and Lateral Cured-in-Place Liner.” LMK holds over 100 issued or pending patents and patent applications worldwide and is headquartered in Ottawa, Illinois, with numerous licensees.