Damages Expert May Not Rely on Revenue Sharing Agreements to Determine Reasonable Royalty for Wireless Location Patent

The court granted defendant's motion to strike portions of plaintiff's damages expert's report for improperly relying on revenue sharing agreements. "The revenue sharing agreements are contracts for 'app' developers to list their software on [defendant's] Store or agreements for splitting advertising revenue with third-party advertisers. [Plaintiff] argues these agreements are relevant to show 'how [defendant] splits the benefit of the invention with partners.' What [defendant] shares with [a nonparty] for Angry Bird downloads or for advertisements on partner websites has no bearing at all on predicting how much of the incremental profits [defendant] would share with [plaintiff] for a bare, non-exclusive license covering part of a location platform that [defendant] develops itself."

TracBeam, LLC v. Google, Inc., 6-13-cv-00093 (TXED May 9, 2014, Order) (Davis, J.)