Cybersecurity company wins nearly $40 million in patent verdict against competitor

The unanimous verdict, reached Tuesday, ended a two-week trial in San Jose before U.S. District Judge Beth L. Freeman of the Northern District of California.

Finjan alleged competitor Blue Coat Systems Inc. infringed six technology patents used in its cybersecurity products. The jury found infringement on five. Finjan Inc. v. Blue Coat Systems Inc., 13-CV3999 (N.D. Cal., filed Aug.. 28, 2013).

Jury members awarded damages on individual patent infringement claims, granting the bulk of the award - $24 million - for an infringement stemming from Blue Coat's Webpulse product. Blue Coat describes the product as a cloud-based Web filter.

Blue Coat, a Sunnyvalle-based security and networking company, was purchased in March by private equity firm Bain Capital for $2.4 billion.

Kramer Levin Naftalis & Frankel partners Lisa Kobialka, Paul J. Andre and James Hannah represented Finjan. Edward G. Poplawski, a Wilson Sonsini Goodrich & Rosati PC partner, was the lead attorney for Blue Coat. Neither side returned requests for comment Tuesday.

Julie Mar-Spinola, chief intellectual property officer for Finjan Holdings Inc., said the company was "confident in the merits of our patent claims against Blue Coat. It is significant that the jury unanimously agreed with us on all but one."

Four patents were found to be literally infringed and one patent was found to be infringed under the doctrine of equivalents. Blue Coat failed to persuade the jury that any of Finjan's patents are invalid.

Finjan is not done suing Blue Coat. A complaint filed in the same court in July alleges infringement of seven additional patents.

The company is again seeking a jury trial as well as a permanent injunction against Blue Coat from infringing the asserted patents. Finjan Inc. v. Blue Coat Systems Inc. 15-3295 (N.D. Cal., filed July 15, 2015).