Judge Orders Weyerhaeuser To Pay $458M For Spinning Off Patent Liability

Law360, New York (April 6, 2005, 12:00 AM EDT) -- In a stinging rebuke to companies that try to divorce themselves from patent infringement liability, a bankruptcy judge in Atlanta has ordered Weyerhaeuser Co. to pay $458 million to a spin-off that inadvertently took over a diaper that infringed patents held by a rival.

U.S. Bankruptcy Judge Margaret Murphy entered an order and judgment holding Weyerhaeuser liable to the bankruptcy estate of Paragon Trade Brands for $458 million in damages, plus attorneys' fees and interest, Paragon counsel Andrews Kurth said.

“The gravamen of Weyerhaeuser's liability is...
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