Friday, December 17, 2010

Reasonable Royalty Damages not Limited by Defendant's Profits or Selling Price Where Plaintiff Lays Factual Predicate for Price Erosion

The court denied defendants' motion to preclude the testimony of plaintiff's damages expert on the issue of a reasonable royalty even though the expert's royalty exceeded defendant's profits and, in some cases, the selling price of the accused products. "[P]laintiff . . . argues that [its damages expert] was correct not to put a cap on damages because the profits earned by the defendants in the eroded market that they allegedly created should not be used to set the limits on damages. Again, assuming that the information provided to [the expert] [i.e., that 'but for' the infringement prices would have been substantially higher] is supported by proper factual predicates, [the expert's] reliance on this information does not compel the exclusion of 'but for' pricing in the reasonable royalty calculation."

SynQor, Inc. v. Artesyn Technologies, Inc., et. al., 2-07-cv-00497 (TXED December 13, 2010, Order) (Everingham, M.J.)

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