Medical Device Patent Infringement

Medical Device Patent Infringement
Project Summary
Background
A biomedical engineering firm and a medical device company asserted claims of patent infringement
against one another. The patented technology at issue related to minimally disruptive spinal surgery
devices and procedures.
Our Analysis
Intensity calculated lost profits and reasonable royalty damages stemming from alleged patent
infringement. As part of its work, Intensity performed an analysis of economic factors informing on
whether lost profits were an appropriate remedy for the respective patent holders, including demand for
the patented product, absence of acceptable non-infringing alternatives, and capacity to exploit demand.
As part its analysis of lost profits, Intensity defined the relevant market for the products at issue and
determined sales that the patent holder would have made but for the alleged infringement. Intensity
calculated usage of the asserted technology and a sales price that would have occurred but for the
alleged infringement. Intensity calculated lost profits on lost sales and determined a reasonable royalty
for the remaining units.
As part of its analysis of a reasonable royalty, Intensity conducted an evaluation of each of the 15
Georgia-Pacific factors relating to a hypothetical negotiation for a license to the patented technologies.
Intensity evaluated a number of license agreements, licensing policies, commercial relationships,
bargaining positions, profitability, contribution of the patented technology, convoyed sales, and other
factors informing on the outcome of a hypothetical negotiation between the parties. Intensity calculated
an economically appropriate royalty base and royalty rate to determine an appropriate reasonable
royalty.
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