Illinois Tool Works Inc. v. MOC Products Company, Inc., 3-09-cv-01887 (CASD June 24, 2013, Order) (Sammartino, J.).
Thursday, June 27, 2013
Expert’s Concession That Inferior Products May Capture Market Share Does Not Undermine Lost Profits Analysis
The court denied defendant's post-trial motion for judgment as a matter of law that plaintiff was not entitled to lost profits. "[Defendant] argues that [plaintiff's damages expert] was obligated to conduct a study reconstructing the marketplace to support his estimate of lost profits. Instead, [the expert] simply assumed that [plaintiff] would have captured 50% of [defendant's] sales, with the remainder being diverted to other market participants with unacceptable, but nonetheless competitive, products. [Defendant] contends that [the expert's] assumption of a 50% capture rate does not constitute sound economic proof and does not satisfy the Panduit test. . . . [The expert's] failure to conduct an empirical market analysis does not undermine the jury’s findings. [His] cautious estimate that [plaintiff] would have captured 50%, rather than 100%, of [defendant's] sales absent [defendant's] infringement merely accounts for the possibility that competing products might experience some commercial success even if inferior to the patented tool in critical respects. [Plaintiff's expert's] prudent concession that inferior products might still capture some sales due to market realities is not inconsistent with the [Panduit Corp. v. Stahlin Bros. Fibre Works, Inc., 575 F.2d 1152 (6th Cir. 1978)] analysis."