Intel Corporation v. Terabyte International, Inc., Jean Hsu, Kenneth Hsu

Terabyte International, Inc., Jean Hsu and Kenneth Hsu (collectively referred to as “Terabyte”) appeal the district court’s judgment following a bench trial in Intel Corporation’s (“Intel”) trademark infringement action under the Lanham Act, 15 U.S.C. §§ 1051-1127 and California state law. Terabyte contends that the district court erred by concluding that it had misappropriated Intel’s trademark and that it acted willfully. Terabyte also challenges the district court’s award of damages and attorney’s fees. We affirm on the merits, but reverse and remand as to the amount of attorney’s fees.

STATEMENT OF FACTS

Intel manufactures micro computer components and systems, including devices known as math coprocessors. Intel produces several different math coprocessors that offer varying levels of performance, which affect the speed at which personal computers function. For example, the Intel 287-6 is designed for computers operating at six megahertz, whereas the 287-10 chip has the capacity to run at ten megahertz. “Slower” or low performance math coprocessors are less expensive than “faster” or high performance math coprocessors. Intel distributes its math coprocessors directly to…