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 | 3 min read | 06.03.26
Important EU Court Judgment Clarifies Rules on Interest Due in Cartel Damages Cases
In a judgment that will have direct and immediate consequences, the Court of Justice of the European Union (CJEU) has clarified that for all competition damages actions brought after 26 December 2014, interest runs from the date on which the harm occurred. The ruling addressed two important questions: (1) whether national provisions implementing Article 3(2) of the EU Damages Directive — which requires interest to run from the date harm occurred —apply to cases in which the harm preceded the adoption of those provisions; and (2) how the date of harm should be determined in cartel cases involving the purchase of goods at inflated prices.
Client Alert | 2 min read | 06.02.26
SBA OHA Confirms That the Submission Date for a Proposal with Pricing Controls Size Determination
Client Alert | 5 min read | 06.01.26
California Court Upholds Insurer’s Duty to Defend After Covered Claim Is Dismissed
Client Alert | 2 min read | 05.29.26
California Assembly Passes AB 1776, Sending Major Antitrust Bill to the Senate
