Domestic Fabrics alleged patent infringement against retailer Sears, Roebuck & Co. Nearly six years after first writing a letter to Sears, Domestic Fabrics collected more than $2.5 million in damages and royalties after a court decided Sears had, in fact, infringed on Domestic Fabrics’ patent.

The patent related to a type of knitted fabric, which Domestic believed Sears was importing from a foreign manufacturer under the “Canyon River Blues” label.

A first letter to Sears Roebuck from Domestic Fabrics asked that the retailer stop making and selling products incorporating the fabric and invited Sears to discuss the possibility of a licensing agreement.

Domestic Fabrics continued to attempt a resolution with Sears Roebuck without success. After suit was filed, there were further unsuccessful negotiations. After being advised of the small firm’s patent, according to the court, Sears Roebuck did not do enough to form a good faith belief that it was non-infringing, continued business selling products incorporating the small firm’s patent, and did not enter serious negotiations with Domestic Fabrics. Sears’ own conduct and relative size were factors the Court examined in finding willful patent infringement.

Domestic Fabrics produces fabrics in Kinston, North Carolina, a town 78 miles east of Raleigh hit hard by the loss of jobs to overseas manufacturers in the textile and apparel manufacturing sectors. Sears, Roebuck is headquartered in Hoffman Estates, Illinois. Sears’ 2006 revenue exceeded $30 billion, according to Yahoo! Finance.