Pre-Suit Settlement Negotiations Admissible to Show No Willfulness, But Not Reasonable Royalty

The court granted in part defendants' motion in limine to exclude evidence regarding the parties' pre-suit license and settlement negotiations. "Where, as here, the negotiations occurred between the parties to the litigation, concerned the subject of the litigation, and are being offered for the purpose of establishing a reasonable royalty (i.e., the 'amount of a disputed claim'), Rule 408(a) bars their admission. Nor do I find persuasive [plaintiff's] contention that the pre-suit negotiations must be admitted because [defendants' expert] considered these negotiations as part of his reasonable royalty analysis. . . . To the extent [plaintiff] seeks to introduce evidence of the parties’ negotiations for the limited purpose of defending against willfulness, Rule 408(b) does not preclude it from doing so and neither will I."

Carpenter Technology Corporation v. Allegheny Technologies Incorporated, et. al., 5-08-cv-02907 (PAED November 14, 2012, Order) (Stengel, J.).