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 | 7 min read | 09.14.26
AI in Life Sciences: Ten Legal Considerations and Risks of AI Use in Drug Discovery and Development
Over the past several years, the biopharmaceutical industry has embraced artificial intelligence and machine learning (AI/ML) in near lockstep with the pace of AI/ML innovations. Today, industry leaders are using AI/ML to, among other things: discover and assess biological pathways, target chemical structures and sequences; design proteins; model pre-clinical and clinical trials; recruit and screen potential patient populations; evaluate clinical trial results and biomarker data; prepare regulatory filings; and manage supply chains. Deployment of new AI/ML models promises extraordinary advances in pharmaceutical development. However, as with any technological and scientific advances, the use of AI/ML also poses substantial legal risks that life sciences companies need to consider and proactively manage.
Client Alert | 6 min read | 09.14.26
Mental Health Parity Bulletin Restates Best Practices for Evaluating Compliance
Client Alert | 6 min read | 09.11.26
It’s LIVE: The Cyber Resilience Act Reporting Is Mandatory as of Today - 11 September 2026
Client Alert | 10 min read | 09.11.26
Mining, Indigenous Consultation Rights, and Investment Treaty Protection
