Things go from bad to worse for L’Oreal in their multifaceted litigation with Olaplex

In 2018, the Federal Circuit reversed the District Court of Delaware’s refusal to grant Liqwd a preliminary injunction against L’Oreal Liqwd v L’Oreal Preliminary Injunction.  Many reported earlier this summer on L’Oreal’s expensive loss to Olaplex in the District Court of Delaware.  (See, e.g., https://www.bloomberg.com/news/articles/2019-08-12/l-oreal-owes-startup-91-million-for-stealing-its-trade-secrets).  L’Oreal has now been dealt another blow by the Federal Circuit, with their reversal of a win for L’Oreal in a post-grant review proceeding. In  Liqwd, Inc. v. L’Oreal USA Inc., Appeal No. 2018-2152, decided October 17, 2019 and unsealed on October 30, 2019, Liqwd v L’Oreal 2 Copying the Federal Circuit has held that the Board erred in their conclusion that though Liqwd had proved that L’Oreal used Liqwd’s confidential information and copied Liqwd’s patented method, the copying was legally irrelevant.  In doing so, the Federal Circuit rejected L’Oreal’s argument that because Liqwd had not shown “replication of any specific product embodying the claimed invention” there was no evidence of copying by L’Oreal.  This does not bode well for L’Oreal in related litigations that are yet pending.