Western Digital Patent Infringement Fine Slashed From $553M to $1

Western Digital was found to have infringed on a patent held by SPEX Technologies related to encryption technology used in its Ultrastar, My Book, and My Passport hard drives, but a California federal judge drastically reduced the damages from over $550 million to just $1. The initial jury award included $316 million in damages plus $237 million in interest, but the judge ruled that SPEX failed to provide sufficient and reliable evidence to justify the high damages figure, particularly due to the exclusion of their expert testimony. While the court upheld Western Digital's liability for infringement, it concluded that SPEX could not adequately quantify its losses, leading to the symbolic nominal damages award. Western Digital hailed the decision as a significant victory, allowing the company to avoid a crippling financial penalty amid its ongoing business restructuring and innovation efforts. This ruling highlights the challenges patent holders face in proving damages in complex technology infringement cases and may influence how future patent disputes are litigated. SPEX has yet to publicly respond to the court's order reducing the award.