As this patent infringement action moved closer to trial, the parties filed various motions in limine, including defendant Fortinet Inc.’s motion to strike the report and expert testimony of Network Protection Sciences, LLC’s (“NPS”) damage expert. In its motion to strike, Fortinet contended that the damage expert’s analysis improperly based royalties on the entire market value of the accused products.
To analyze the motion to strike, the district court summed up the entire market value rule as follows: “The entire market value rule — which has varied somewhat in formulation over time — has been a highly-criticized and highly-litigated methodology. In recent years, the Federal Circuit has restricted its use, most notably in LaserDynamics v. Quanta Computer, Inc., 694 F.3d 51, 67 (Fed. Cir. 2012). In that action, the Federal Circuit explained it as follows (per Judge Jimmie Reyna):
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