Patent Damages, Lost Profits, Reasonable Royalty – Industrial Equipment

Overview
Insight Economics was retained to evaluate damages related to alleged infringement of a patent pertaining to a vehicle spray washer with lighted spray arms. A jury in the district court awarded both lost profits and reasonable royalty damages in an amount consistent with the testimony of Insight’s expert.

Challenge
The competitive dynamics between the parties informed a patent infringement damages analysis that considered many factors. Insight presented analysis of the Panduit factors related to lost profits and Georgia-Pacific factors related to a determination of a reasonable royalty. Multiple products were included in the damages calculation, requiring careful consideration and due diligence.

Results
Insight’s expert offered damages opinions at trial, which the jury adopted in awarding lost profits and reasonable royalty damages. On appeal, the Federal Circuit affirmed the majority of the damages awarded.