Intellectual Property, 5th Edition

CHAPTER 29AEVOLVING PATENT DAMAGES

In 2020, the trend for increasing damages awards continued with one of the largest judgments in history in the case styled at Centripetal Networks, Inc., v. Cisco Systems, Inc., Civil Action No. 2:18cv94 (E.D. Va). The case is currently on appeal to the Federal Circuit.

Another large patent damages award occurred in VLSI Tech. LLC, v. Intel Corp., No. 6:21‐cv‐00057‐ADA, Dkt. 564 (E.D.TX.), a case dealing with two patents, U.S. Patent Nos. 7,523,373 (‘373 Patent) and 7,725,759 (‘759 Patent)¹ related generally to integrated circuits with minimum memory operating voltages and managing clock speed in electronic devices. VLSI asserted infringement based on the patented technology being incorporated into millions of various models of Intel microprocessors. The jury awarded $1.5 billion for past infringement of the ‘373 patent and $675 million for past infringement of the ‘759 patent. The jury also responded that this was a lump sum for all damages, rather than a “running royalty in the form of a lump sum for past damages only.”

In VLSI, the plaintiff's expert used a hedonic regression model to provide an estimate of the royalties owed for the infringement of the asserted patents.² The regression model consisted of a multitude of factors, each associated with a coefficient. Plaintiff's expert inputted various coefficients regarding the benefits of the product and provided the price benefit specific to the patented technology. The expert relied on ...