Intensity performed economic analyses to evaluate damages resulting from breach of contract claims between a patent holder and a media company for 3D film conversion technology. Intensity’s analyses consisted of evaluating unpaid royalties and fees pursuant to the contract as well as value received from the settlement of a related litigation.
Intensity worked on behalf of an award-winning senior scientist, who pioneered development of 2D-to-3D conversion technology and obtained numerous patents that were licensed to a global entertainment technology company. In evaluating reasonable royalties and lost profits, Intensity considered contractual provisions, demand for the patented product, non-infringing alternatives, commercial relationships, and relevant license agreements. To determine damages, Intensity employed an income approach involving analysis of discounted cash flows, modeled revenue projections, projected 3D film growth, profitability in 3D film conversion, and historical, current, and addressable market size for 3D films.
Intensity’s analyses were considered by an arbitration panel in its decision to award breach of contract damages, including monetary compensation and public credit to the patent-holding scientist for his contribution to certain 3D films.