The Texas Patent Litigation Monthly Wrap-Up for October 2023 covers three decisions addressing the scope of the work-product and attorney-client privileges, limits on the use of a.
In
Vectura, the Federal Circuit recently reiterated that the entire market value of an accused multicomponent product may serve as the royalty base if the patent damages analysis is built on sufficiently comparable licenses.
Vectura Limited v. Glaxosmithkline LLC, 981 F.3d 1030, 1040-1042 (Fed. Cir. 2020). Pursuit of the entire market value of a multicomponent product ordinarily requires the patentee to demonstrate that the infringing feature drives customer demand for the product.
Virnetx, Inc. v. Cisco Sys., Inc., 767 F.3d 1308, 1326 (Fed. Cir. 2014). Without such evidence, the patentee must apportion down either the royalty base or the royalty rate to account for the difference between the patented features and the conventional features of the accused product.
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A patent holder that prevails in a patent infringement suit is entitled to either lost profits or a reasonable royalty. A reasonable royalty calculation often implicates the infringing product s revenues (the royalty base ).
1 The smallest saleable patent-practicing unit ( SSPPU ) is a legal doctrine that restricts the royalty base that a patent holder can use in its reasonable royalty calculation. Two recent cases may shape the application of this doctrine in the patent infringement context and the SEP licensing context. Both patent holders and patent-practicing organizations should take note of and monitor developments.