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The case involved one of the company's three-cone drill bit product lines called IDEASTM. The plaintiff claimed these drill bits infringed certain of the plaintiff's patents. The company's other three-cone drill bits and diamond drill bits were not involved in this litigation. The jury found that the company infringed the claims asserted by the plaintiff and that certain of the infringements were willful. Therefore, the court may increase the damages, in its discretion, up to three times the amount found by the jury.
The judge in the case will consider the scope of an injunction against the future sale of IDEASTM drill bits in the near future. Smith does not believe that this verdict or an injunction will have a material adverse effect on the sale of existing three-cone drill bits or the design of future drill bits.
Smith Intl. said it believes this decision is erroneous and intends to vigorously pursue all options. Once judgment is entered by the court, the Company will file all appropriate motions and, if necessary, appeal the verdict. In the event of an unfavorable outcome, the company has adequate capacity under its existing revolving credit facilities to fund any ultimate award.
Smith International, Inc. is a worldwide supplier of products and services to the oil and gas exploration and production industry, the petrochemical industry and other industrial markets through its four principal business units ﾖ M-I SWACO, Smith Technologies, Smith Services and Wilson.