Thursday, January 5, 2012

Component That "Contributes to the Safety" of Accused Product Does Not Trigger Entire Market Value Rule

The court granted in part defendant's motion for summary judgment on plaintiff's use of the entire market value rule in calculating lost profit damages. "Evidence that the patented sensor technology contributes to the safety of the infusion pump . . . does not warrant presentation of the entire market value rule to the jury. . . . According to Plaintiff’s argument, it is enough if the patented technology contributes to an intermediary feature that drives customer demand. The logic of this argument, while initially appealing, fails upon closer inspection. As Defendant points out, in this case there is more than one component that contributes to the safety of the pump. Under Plaintiff’s argument, each component could serve as the basis for customer demand. That result, however, is antithetical to the entire market value rule. . . ."

CareFusion 303, Inc. v. Sigma International, 3-10-cv-00442 (CASD January 3, 2012, Order) (Sabraw, J.)

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