A federal jury in Texas has awarded Lashify $30.5 million in lost profits after finding that Qingdao Lashbeauty Cosmetic Co., Ltd., a Chinese cosmetics manufacturer that does business as Worldbeauty, willfully infringed several of the patents related to its innovative artificial eyelash extension system. The jury also set a 30 percent reasonable royalty rate for future sales of Worldbeauty’s infringing products, further solidifying the victory for the beauty company, which touts itself as “the inventor of the DIY lash extension system.”
The jury’s August 23 verdict, which concludes a lawsuit that was first filed in the U.S. District Court for the Western District of Texas back in 2022, marks a big win for Lashify, which revolutionized the at-home lash extension market with its patented Gossamer lash system. The Los Angeles-based company originally accused Worldbeauty of deliberately infringing on multiple U.S. patents covering the technology and design of its lash extension system, causing it to suffer significant financial harm.
According to the verdict form, the jury found that Lashify successfully proved that it was entitled to damages based on lost profits and reasonable royalties for Worldbeauty’s infringement. The $30.5 million in lost profits reflects the harm Lashify said it endured due to Worldbeauty’s unlawful competition in the U.S. market. Additionally, the jury also determined that a royalty rate of 30 percent would apply to future sales of infringing products, which means that Lashify will continue to receive compensation for any continued misuse of its patented technology by Worldbeauty,
Notably, the jury’s finding that Worldbeauty’s infringement was willful could lead to treble damages, potentially increasing Worldbeauty’s financial liability threefold, pending further rulings.
The Background: The lawsuit got its start in July 2022 when Lashify filed a complaint for patent infringement against Worldbeauty, accusing the Chinese manufacturer of illegally replicating its award-winning lash system. The complaint argued that Worldbeauty’s products, including its DIY lash kits, were designed to copy Lashify’s innovative Gossamer lash technology.
According to the complaint, Lashify owns a broad portfolio of patents, including U.S. utility patents 11,219,260, 11,253,020, 11,330,856, and 11,234,472. These specific patents, which are in dispute in the case, cover various aspects of Lashify’s lash extension system, including the structural design of the lashes, the method of application, and the unique adhesive and tools used to apply them, court documents state.
“Worldbeauty, claiming to be one of the world’s largest artificial lash extension manufacturing companies, launched its accused products after Lashify’s system was offered to the public, and willfully copied Lashify’s technology without license, permission, or authorization to create its knock-off products,” Lashify asserted in its the complaint, noting that Worldbeauty marketed its infringing products to U.S. customers through platforms like Alibaba and its own website.
The lawsuit emphasized the striking similarities between Lashify’s patented system and Worldbeauty’s infringing products, with the Lashify alleging that Worldbeauty’s DIY lash kits were almost identical to its Gossamer lash system. In particular, Worldbeauty copied key elements of its product, such as the lash extensions, themselves, the adhesive bond, and the applicator tool, per Lashify. To make matters worse, Lashift claimed that Worldbeauty’s products were deliberately designed to look and function like its own offerings, which suggests that the defendant had reverse-engineered the technology at play.
Furthermore, Lashify claimed that Worldbeauty not only infringed its patented designs but did so knowingly. “Worldbeauty set as its goal to copy Lashify’s products and design, unlawfully taking advantage of Lashify’s innovation in the industry,” according to Lashify, which argued that Worldbeauty purchased its products, studied them, and then replicated them without permission.
With the foregoing in mind, Lashify sought monetary damages, as well as an injunction to stop Worldbeauty from continuing to manufacture or sell the infringing products. The company also requested that Worldbeauty destroy all remaining infringing products in its inventory.
With the jury’s ruling in its favor, Lashify is now one step closer to securing these remedies and safeguarding its position in the competitive lash extension market. While the verdict represents a significant win for Lashify, the legal battle is not over yet. The court has yet to rule on whether Worldbeauty’s infringement was indeed willful, which could result in an enhancement of the damages awarded. If the court sides with Lashify on this point, Worldbeauty may face additional financial penalties.
THE BIGGER PICTURE: “This verdict is a critical milestone in Lashify’s broader litigation strategy to protect its intellectual property and business. The company has engaged in multiple legal battles across federal courts in Texas, California, and Utah, as well as before the International Trade Commission,” Fenwick and West, whose litigation partner Saina Shamilov led the Fenwick team in representing Lashify, stated in a note.
The case is Lashify, Inc. v. Qingdao Lashbeauty Cosmetic Co., Ltd. 6:22-cv-00776 (W.D. Tex.).
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