Patent Damages
7Apr/14Off

WDPA orders ongoing royalties

Posted by Justin Barnes

On March 31, 2014, Judge Fischer of the Western District of Pennsylvania issued a 72-page opinion in Carnegie Mellon Univ. v. Marvell Tech. Group, Ltd., Case No. CV 09-290.  The opinion covered a number of post-verdict damages issues, including pre-judgment and post-judgment interest, supplemental damages (for sales between the end of discovery and through trial), enhanced damages, and ongoing royalties.  Of particular note are the enhanced damages and ongoing royalties issues.

15Jan/14Off

EDTX allows cost savings approach for royalties, based on cost of entire location network

Posted by Chris Marchese

On November 25, 2013, Judge Davis of the Eastern District of Texas issued an opinion in TracBeam L.L.C. v. AT&T Inc., Case No. 6:11-CV-96 (Doc. No. 551), in which the court ruled on several issues including a motion to exclude opinions of TracBeam’s damages expert, Robert Mills.  According to the court, the parties agreed that an appropriate royalty rate would be based on AT&T’s cost savings from using the patented technology compared to the best available non-infringing alternative.  The issue centered around how to compute the cost savings.  Mr. Mills opined that the cost savings to AT&T was the cost of building a new location network infrastructure at a price of $742M.  AT&T claimed that Mr. Mills wrongly used the cost of AT&T’s entire location network rather than the cost savings based on the value of the patented methods.  AT&T argued that the value of the invention could be assessed by taking “the difference in cost between the redundant system and the existing system.”  Slip op. at 8.

1Aug/13Off

NDCA finds violation of FRAND for seeking ITC exclusion order

Posted by Justin Barnes

On May 20, Judge Whyte in the Northern District of California issued his second FRAND-related opinion of the month, this time in Realtek Semiconductor Corp. v. LSI Corp., Case No. 5:12-cv-03451.  According to the Court

This dispute concerns whether a holder of patents essential to an industry standard ("standard-essential patents") may commence an action before the U.S. International Trade Commission ("ITC") pursuant to Section 337 of the Tariff Act of 1930 ("Section 337 action") seeking an exclusion order and injunctive relief against a party practicing that standard without violating its obligation to license the standard-essential patents on reasonable and non-discriminatory ("RAND") terms.

Realtek had moved for summary judgment that LSI and Agere had breached their FRAND obligations by failing to offer a license on reasonable terms prior to seeking an exclusion order from the ITC.  Realtek also moved for an order barring LSI and Agere from enforcing or seeking to enforce an exclusion order.  The patents at issue related to 802.11 wireless standards, and Agere had agreed to license its 802.11-related patents on FRAND terms.

31Jul/13Off

NDCA sets FRAND rates for Rambus’ SDRAM patents as sanction

Posted by Justin Barnes

On May 9, Judge Whyte in the Northern District of California issued an order in SK Hynix Inc. v. Rambus Inc., the latest opinion in an ongoing patent saga that has lasted a decade.  Of interest to patent damages in Judge Whyte’s order was his setting of a FRAND rate as a sanction against Rambus for spoliation.  Put differently, the sanction Judge Whyte determined was most appropriate for the spoliation was to strike any damages above and beyond a “reasonable and non-discriminatory royalty.”  The rationale for this was to ensure that SK Hynix would not be “put at a competitive disadvantage in the marketplace.”

29Jul/13Off

WDWA sets FRAND rates for 802.11 networking and H.264 video

Posted by Justin Barnes

On April 25, 2013, Judge Robart of the Western District of Washington issued a 200+ page findings of fact and conclusions of law in Microsoft Corp. v. Motorola Mobility, Inc., Case No. 2:10-cv-01823 (Doc. No. 681), addressing a multitude of issues, but of particular interest, FRAND (fair, reasonable, and non-discriminatory) rates for patents relating to two well-known industry standards.  The standards at issue were the IEEE wireless local area network (“WLAN”) standard, 802.11, and the ITU advanced video coding standard, H.264.