Patent Damages

WDWA allows lost profits market share evidence based on third party analyst reports; rejects 3X litigation multiplier for reasonable royalty

On March 11, 2013, the WDWA issued an opinion in Avocent Redmond Corp. v. Rose Electronics, Case No. C06-1711RSL (Doc. No. 874), addressing Belkin’s Daubert motion to exclude opinions by Avocent’s damages expert (William O. Kerr) concerning lost profits and reasonable royalty.  The lost profits issue concerned Kerr’s use of third party market analyst reports to support his market share analysis.  The reasonable royalty issue concerned his use of a 3X multiplier to upwardly adjust the royalty rate in an allegedly comparable settlement agreement.  The court denied the lost profits motion, but granted the reasonable royalty motion.