A recent decision from the U.S. Court of Appeals for the Federal Circuit, VirnetX v. Cisco Systems, 2014 U.S. App. LEXIS 17748, highlights the uncertain and shifting currents for proving patent damages. This case caption is somewhat misleading because the damages issues actually focused on Apple products. In any event, the specific defendant is not important except to note that the size of the defense team and the availability of experts are not determinative of the outcome on damages.
Before discussing the case outcome, consider a typical trial scenario. Your client, the patent owner, identified an infringer. You do your analysis and believe you can successfully assert the patent in a district court action. And you recognize that the patent damages statute (35 U.S.C. Section 284 entitles the patentee to damages in an amount “adequate to compensate for the infringement, but in no event less than a reasonable royalty for the use made of the invention by the infringer, together with interest and costs as fixed by the court”) is not as straightforward as it might appear.
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