Articles Posted in Damages

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In this patent infringement action, the defendants filed a motion in limine to exclude evidence of any claimed lost profits damages alleged by the plaintiff, the inventor of the patent-in-suit.
The defendants asserted that the plaintiff could not recover lost profits damages because he did not make or sell products covered by the patent-in-suit.

In support of their position, the defendants cited cases stating that only a plaintiff who sells the patented device may claim lost profits damages. See Poly-America, L.P. v. GSE Lining Tech., Inc., 383 F.3d 1303, 1311 (Fed. Cir. 2004). The defendants also cited cases showing that a plaintiff cannot claim as patent infringement damages the lost profits of a related corporation, arguing that the plaintiff could not recover the lost profits of Death Door Marine, Inc. (“DDM”) because DDM’s profits “flow inexorably” to the plaintiff.
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The defendants’, Roland DGA Corporation and Roland DG Corporation (collectively “Roland”), filed a motion for summary judgment against plaintiff, Gerber Scientific International, Inc. (“Gerber”) regarding Gerber’s claims for lost profits and enhanced damages. Gerber’s claim for lost profits was based, in part, on survey evidence.

The district court explained that “[t]o recover lost profits a patentee must show that „but for’ infringement it reasonably would have made the additional profits enjoyed by the infringer.” Micro Chemical, Inc. v. Lextron, Inc., 316 F.3d 1119, 1122 (Fed. Cir. 2003). “A patentee may resort to any method showing, with reasonable probability, entitlement to lost profits „but for’ the infringement.” Id.
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In this patent infringement action between Chrimar Systems, Inc. (“Chrimar”) and Alcatel-Lucent USA, Inc. (“Lucent”). Lucent sought production of the damages expert report of Plaintiffs’ damages expert, Robert Mills, that was created for a litigation currently pending in the Northern District of California.

Chrimar opposed the request on the ground that the expert report was covered by a protective order issued by another Federal court. The district court in Texas agreed.
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The plaintiff, Radware, planned to present damages theories in its closing argument seeking more than twice the damages that its retained expert on damages computed. The district court noted that “[w]hile expert testimony is not always required to prove damages, any damages theory must have evidentiary support. Radware had a duty to disclose its damages theories and evidence under Federal Rule of Civil Procedure 26(a)(1)(A)(iii) and in response to F5’s discovery requests and this court’s orders. Radware attempted to do that by pointing to the calculations of its expert Mr. Malackowski. The permissible scope of Radware’s damages contentions at trial is thus limited by Radware’s pretrial disclosures–including Mr. Malackowski’s expert report–and, to the extent that the court allowed it, Mr. Malackowski’s revised report served on February 27, 2016.”
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Metaswitch Networks Ltd. (“Metaswitch”) filed a motion for partial summary judgment to limit Genband US LLC’s (“Genband”) damages based on a failure to mark. In support of its motion, Metaswitch argued that partial summary judgment should be granted because: (1) Genband makes and sells products that practice the patents-in-suit, (2) Genband has not marked those products with the patent numbers, (3) these unmarked products have been sold throughout the damages period; and (4) Genband has no evidence that Metaswitch had pre-suit notice of the patents-in-suit.

Genband’s opposition did not contest any of these facts. Instead, Genband argued that Metaswitch cannot meet its summary judgment burden because Metaswitch contended that Genband does not practice the patents-in-suit. In support of this position, Genband cited to the report of Metaswitch’s expert that Metaswitch hotly contests Genband’s assertion that it practices the patents-in-suit. As a result, Genband argued there is a genuine fact dispute because a reasonable jury could credit Metaswitch’s evidence and conclude that Genband does not practice the patents-in-suit.
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Plaintiffs Equistar Chemicals, LP and MSI Technology, LLC accused Westlake Chemical Corporation (“Westlake”) of infringing U.S. Patent No. 7,064,163. The asserted patent relates to a method of making polyolefin-based adhesive resins used for bonding to or bonding together polyolefins and polar materials. Westlake retained Christopher Bakewell as a damages expert, and Plaintiffs asserted that Bakewell relies on information that was not produced during discovery in his expert report, particularly on pound estimates for PE processing. Plaintiffs contended that Bakewell’s report improperly relie upon private conversations concerning non-infringing alternative costs.
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In this patent infringement action, Plaintiffs filed a motion to exclude the defendant’s damage expert. The motion sought to exclude portion of the defendant’s expert report on damages, in particular the “market share reasonable royalty analysis” which was based on licenses for the patents-in-suit.
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In this patent infringement suit, Defendants and Counterclaimants James Stephens and Spectrum Laboratories, LLC (“Spectrum”) moved to strike the report of Plaintiff’s damages expert, Robert Taylor. Spectrum argued that the Plaintiff did not designate Mr. Taylor as an expert before the expert designation deadlines set by the district court expired. Spectrum also contended that the plaintiff violated a protective order by providing Taylor with information designated “Attorneys’ Eyes Only” under the protective order.

The Plaintiff conceded that it failed to identify Taylor prior to the district court’s deadline, but contended that the oversight was inadvertent. The Plaintiff also argued that Taylor’s report was timely filed before the expert report cutoff date and that Taylor was required to execute the Acknowledgment accompanying the protective order prior to receipt of any information marked confidential or attorney’s eyes only.
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Prism brought suit against Sprint alleging patent infringement of U.S. Patent Nos. 8,127,345 and 8,387,155 (the “Asserted Patents”). After the jury returned a $30 million award in favor of Prism, Prism filed a motion for an accounting and ongoing royalties. Prism requested an accounting for Sprint’s infringement after 2014 through the entry of judgment and to have a royalty set for ongoing infringement through the life of the Asserted Patents.

Sprint opposed the motion by asserting that both an accounting and ongoing royalties were improper because the jury instructions provided Prism compensation for past, present, and ongoing infringement. Prism responded that an accounting and ongoing royalties would grant Prism complete relief from Sprint’s infringement of the Asserted Patents.
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The defendants moved to exclude the expert report of Mr. Ratliff, asserting that he made critical errors in his expert report on damages. The defendants specifically alleged that Mr. Ratliff committed basic math and reasoning errors in adjusting the royalty rate in an exclusive license from 1% to 4% for the non-exclusive hypothetical license.

The defendants first asserted that Mr. Ratliff made three math errors in adjusting a license agreement to derive the reasonable royalty rate for the hypothetical license. After reviewing the expert report, the district court found the approach sufficiently reliable to be admissible under the Federal Rules of Evidence and Daubert. “Why Cree and BU lowered the original 2% running royalty to 1% in the amended agreement, and whether additional payments from Cree and the sublicensees make the licensing scheme the economic equivalent of a 3% running royalty, are factual questions that go to the weight of his testimony.”
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