Cool Technologies inc. Hit with Massive fines after patent lawsuit ends

5/16/08- after a hefty and drawn out lawsuit, Cool Technologies inc. has been forced to pay former CEO and co founder, John Straight a massive 3 Billion Dollars in damages over patent infringement in technology found in their flagship cellphone, the CoolPhone 3G plus and other devices.

The lawsuit came about after Former Founder John Straight alleged that technology used in the “S.3.N.T.1.3.N.C.3” core violated patents that he retained the rights to after his departure from the company.

The “S.3.N.T.1.3.N.C.3” core was only introduced on the CoolPhone 3G plus, but the technology involved was created long before this time, alleges Straight’s legal team. Due to constraints at the time, the project was indefinitely put on hold and seemingly was going unused, and the patents remained in Straight’s control after his departure from the company.

In a statement by Jimmy Round, other Co founder and current CEO of Cool Technologies inc., Round argued that the technology did not violate John Straight’s patents due to the alteration of a number of features originally found in his designs.

However, it was discovered that the modified “S.3.N.T.1.3.N.C.3” cores were exactly the same as those found in the original patents, just with some features purely disabled by software. It was not disclosed publicly what those disabled functions were or if it is possible to reactivate them.

Additionally, it was discovered that many “S.3.N.T.1.3.N.C.3” cores had appeared in other products licensed by Cool Technologies, Such as their range of CoolCharms, which housed the “S.3.N.T.1.3.N.C.3” cores inside, unmodified, so they could communicate to the CoolPhone 3G plus and be recognized, further violating Straight’s initial patent.

With all this discovered, the Judges at Superior Court ruled in favour of John Straight, meaning Cool Technologies had to pay the 3 billion fine and cease all sales of products containing the “S.3.N.T.1.3.N.C.3” core.

In a statement from Cool Technologies inc., Marketing Manager Adriana Square said: “We accept the loss of the lawsuit and will do whatever we can to ensure our customers needs are fulfilled to the best of our ability in the future.”