The battle over patents between Acushnet Co. and Callaway Golf continues as Callaway continues to challenge Acushnet for ball business market share with another court ruling Acushnet had not infringed on Callaway golf ball patents as Callaway contend.
A lot is at stake. Presently Acushnet with their Titleist and Pinnacle brands sell about 60 percent of the balls by dollar value with their Titleist Pro V1 by far the most popular. Callaway has been trying to grow their ball business for years including their purchase of Spalding Golf the former number two in the market.
So how did this all start…take a look at the timeline.
2000 – Titleist revolutionizes the ball business with the multi-layer urethane cover Pro V1 that quickly becomes the most played ball on the PGA Tour and number one selling ball.
2001 and 2003 – Spalding, the former number two ball company, is issued four patents covering multi-layer golf ball manufacturing.
2003 – Spalding Golf goes bankrupt and the remnants, including the four patents in question are bought by Callaway.
January 2006 – Seven examiners for the U.S. Patent Office concur the Spalding patents are invalid prior to Callaway first suing Acushnet.
February 2006 – Callaway sues Acushnet saying the Titleist Pro V1 infringes on the Spalding patents. In 2007 a jury said Acushnet was at fault but Acushnet won an appeal for a new trial. During the first trial the judge ruled Acushnet could not tell the jury the four Spalding patents had been deemed invalid.
November 2008 – U.S. District Court grants Callaway an injunction and judgment causing Acushnet to stop manufacturing the then current version of the Pro V1 and Acushnet rushes to market a version that does not violate the patents.
August 2009 – U. S. Court of Appeals a three judge panel rules for a new trial as requested by Acushnet and overturns the 2008 judgment and injunction prohibiting manufacture and sales of the Pro V1 ball awarded to Callaway. Specifically the ruling says Acushnet could use as part of its defense the 2006 Patent Office ruling the patents were invalid.
March 2010 – In the second jury trial in the U.S. District Court Delaware, the jury decides Callaway has no case against Acushnet for patent infringement and the four patents are invalid.
March 2011 – the Board of Patent Appeals again says the Callaway (nee’ Spalding) patents are invalid but Callaway says they will appeal in the Federal Courts.
Well, at least all the lawyers in this case aren’t contributing to the unemployment problem.
About Ed Travis
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