Friday, September 4, 2009

For Manufacturing Process Claim, Calculating Reasonable Royalty Based on Price of Assembled Computers Was Not Improper

Defendant's motion to exclude expert testimony concerning damages was denied. Calculating "a reasonable royalty based upon the total sales prices of the computers and other configurable products manufactured by [defendant] by assembly processes allegedly embodying the patented method" did not implicate the entire market value rule. "[The expert's] calculation of a reasonable royalty does not consider a combination of patented and nonpatented methods or apparatuses in order to develop the royalty base—[the expert's] analysis considers solely the products produced by a patented method. . . . If [plaintiff] is able to show that the patented method is used by [defendant] to assemble its computers to the extent described in [plaintiff's] opposition brief, then a connection between the infringement and the claimed royalty base would be established. Moreover, it is noteworthy that the patentee licensed its technology using a similar methodology."

Abstrax, Inc. v. Dell, Inc. et al., 2-07-cv-00221
(TXED September 2, 2009, Order) (Everingham, M.J.)

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