Acushnet Wins New Trial in Titleist Pro V1 Golf Ball Patent Case.

Acushnet Wins New Trial In Titleist Pro V1 Golf Ball Patent Case.

Appeals Court Overturns Previous Verdict

Grants New Trial Expanding Acushnet’s Defense Arguments

FAIRHAVEN, Mass. — Acushnet Company, the golf business of Fortune

Brands, Inc. (NYSE: FO), announced that on August 14, 2009, the United

States Court of Appeals for the Federal Circuit granted the

company’s request for a new trial and issued other favorable decisions in its patent dispute with Callaway Golf.

In its opinion, the Court of Appeals’ three-judge panel found

that the inconsistent jury verdict holding one patent claim invalid and

others not invalid was irreconcilable and could not stand. As a result,

the Court of Appeals overturned the judgment and injunction entered by

the District Court in November 2008 and sent the case back to that court

for a new trial. The court also found that the trial court erred in

rejecting an important Acushnet defense before the trial and in not

allowing certain evidence supporting that defense. Acushnet now will be

able to assert that defense and the supporting evidence, in addition to

its other significant defenses, in a new trial before the District

Court. The ruling also confirms that all Titleist Pro V1 products can be

sold, bought and played with confidence and without any threat of

disruption in service.

Successful Appeal Enhances Acushnet’s Confidence

“This very positive Court of Appeals ruling affirms our

contention that we were not allowed to argue our full case before the

jury and that the resulting verdict was inconsistent and not

sustainable,” said Joe Nauman, Executive Vice President, Corporate

and Legal, Acushnet Company. “We look forward to making our full

case to a new jury, where we will have the opportunity to present all of

our defenses with more complete evidence. The Court of Appeals decided

for us on critical issues that enhance our confidence that we will

ultimately prevail in this case. In addition, our confidence is

bolstered by the fact that the U.S. Patent & Trademark Office has

now issued final reexamination decisions holding that all claims of all

four patents are invalid. In fact, the defense reinstated by the Court

of Appeals decision is one that the PTO has relied on in its

decisions.”

Following a trial in December 2007, a jury in the United States

District Court for the District of Delaware was charged with deciding

the validity of nine specific claims in four Callaway patents. The jury

determined that one claim was invalid and that the other eight claims

were not invalid. This created an inconsistency in the verdict that

Acushnet and the Court of Appeals viewed as irreconcilable. In addition,

there were a number of pre-trial rulings by the court that Acushnet

believed materially impacted the outcome of the trial. Acushnet appealed

and the Court of Appeals agreed that the District Court erred in several

of its rulings, requiring a new trial and possibly other proceedings.

Acushnet is the industry leader in developing golf ball technology

and has over 650 active golf ball patents – more than any other

manufacturer. Titleist Pro V1 golf balls are the product of technology

developed and accumulated by the Acushnet Company over the past 20

years, and over 65 Acushnet patents are related to the Pro V1 family.

Titleist, FootJoy and Cobra comprise the major golf brands of

Acushnet Company, an operating company of Fortune Brands (NYSE: FO). For

more information about Titleist, visit us online at www.titleist.com or

contact Joe Gomes, Director of Communications (508.979.3211).

Acushnet Wins New Trial In Titleist Pro V1 Golf Ball Patent Case.
Acushnet Wins New Trial In Titleist Pro V1 Golf Ball Patent Case.
Acushnet Wins New Trial In Titleist Pro V1 Golf Ball Patent Case.
Acushnet Wins New Trial In Titleist Pro V1 Golf Ball Patent Case.

Acushnet Wins New Trial In Titleist Pro V1 Golf Ball Patent Case.

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