Pre-Verdict Reasonable Royalties Should Not Be Used For Determining Post-Verdict Damages
Client Alert | 1 min read | 03.03.08
In Carlos Armando Amado v. Microsoft Corp., (No. 07-1236, February 26, 2008), the Federal Circuit vacates the district court’s royalty award and remands for further consideration. Following a jury finding of infringement by Microsoft and awarding a reasonable royalty of four cents per infringing unit to Amado, the district court trebled the jury’s award to twelve cents using the “trebling for willful [infringement] as a guideline.” The district court also issued a permanent injunction, which was stayed until any appeal was abandoned or otherwise resolved. Both Amado and Microsoft appealed the district court’s award of twelve cents, with Microsoft arguing that the district court abused its discretion by awarding more than the four cents royalty found by the jury.
The Federal Circuit, in vacating the district court’s royalty award of twelve cents, holds that there is a fundamental difference between a reasonable royalty for pre-verdict infringement and damages for post-verdict infringement. Since the jury’s award of four cents per unit was based on Microsoft’s infringing conduct prior to the verdict, that award should not now form the basis for post-verdict damages. The Federal Circuit further notes that the district court’s trebling of damages was erroneously based on willful infringement. Willfulness, the Federal Circuit concludes, is not the proper inquiry when the infringement is permitted by a court-ordered stay. Rather, any damage assessment for post-verdict infringement “should take into account the parties’ bargaining positions, and the resulting change in economic circumstances, resulting from the determination of liability.”
Insights
Client Alert | 4 min read | 03.05.26
The U.S. Department of Labor (DOL) has proposed another revision to independent contractor regulations, one that would provide for more leeway in classifying workers as contractors. DOL’s proposed rule, published on February 26, 2026, would rescind the Biden DOL’s March 2024 independent contractor regulation and reinstate a framework substantially tracking the prior Trump rule of January 2021. The proposed rule would also apply the narrower analysis to worker classifications under the Family and Medical Leave Act (FMLA) and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). The comment period closes in late April 2026; until then, the 2024 rule remains in effect for purposes of private litigation.
Client Alert | 8 min read | 03.05.26
Client Alert | 4 min read | 03.04.26
Sixth Circuit Finds EFAA Arbitration Bar to Entire Case — Not Just Sexual Harassment Claims
Client Alert | 3 min read | 03.02.26
