Thursday, June 23, 2011

Third Party Software Add-In Cannot be Used as Proxy for Valuing Patented Software Component

The court granted defendant's motion in limine to exclude evidence of a third party software add-in as a proxy for the value of the patented technology. "[I]f [plaintiff] intends to use an add-in as a proxy for what the Day patent technology may be worth to [defendant], [it] needs to show a market for the add-in. If there is no market for the add-in, there is no evidence that consumers would buy the add-in. Moreover, if the add-in was then incorporated into [defendant's product], there is no evidence that any consumer would pay [defendant] anything additional because of the inclusion of the add-in. . . . [W]ithout evidence that there is a market for this add-in, the add-ins analysis does not meet the requirement for damages being based on 'sound economic and factual predicates.'"

Lucent Technologies, Inc., et. al. v. Gateway, Inc., et. al., 3-07-cv-02000 (CASD June 16, 2011, Order) (Huff, J.)

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