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Royalty for Standard-Essential Patent

Background

A large software company was accused of utilizing patented, standard-essential video coding technology in computer operating systems and video game consoles. A patent trust accused the software company of infringing the video coding patent, and the software company asserted multiple claims of patent infringement against the entity that founded the patent trust.


Our Analysis

Intensity provided analysis and expert testimony relating to quantification of patent infringement damages. Intensity determined an economically appropriate reasonable royalty for patents asserted by both plaintiffs and defendants, and we provided testimony at trial on the topic of economic damages.

Intensity delivered its analysis within the economic framework of hypothetical negotiations between the parties for licenses to the patents-in-suit. In part, this involved an assessment of the economic aspects of hundreds of license agreements involving the parties and related technologies. In addition, Intensity investigated the economics of standard-essential patent licensing through patent pool entities including a number of video standards licensed by MPEG LA. Intensity also addressed the economic issue of hold up value resulting from widespread adoption of a technology standard prior to allegations of infringement of a standard-essential patent.

Intensity performed analyses of competition, cost structures, marketing strategies, licensing practices, and partnerships relating to the patents-in-suit. After a comprehensive analysis, reasonable royalty damages were determined by quantifying the royalty payments that the parties would have agreed to after taking into account the economic considerations specific to each company.