Contemporary Issues in Patent Damages

Abstract

And the cookie litigation involving Procter & Gamble, Nabisco, Keebler, and Frito-Lay settled in 1989 shortly before trial for $125 million.15The impact of large damage recoveries in patent cases has not been lost on businesspeople around the world.In September 1992, The New York Times reported that Japanese companies, relatively inactive in the past as patent plaintiffs in the United States, are now taking note of large infringement verdicts and settlements in the United States and are planning to seek similar remuneration on their U.S. patents. 1 6 This topic plainly generates interest at the highest corporate management levels here and abroad, both from the points of view of enhancement of profits for plaintiff companies and of risk management for actual and would-be defendants.ity by the Central District of California in the case against Smith, the Northern District of Texas summarily dismissed the case against Dresser.Id.After the reversal of the invalidity holding by the Ninth Circuit, the case against Dresser was reinstated and went to trial.Hughes Tool Co., 816 F.2d at 1550, 2 U.S.P.Q.2d (BNA) at 1397.This resulted in a total award of$132,096,430.92,which included $29,439,158.91 of prejudgment interest.Id at 1555, 2 U.S.P.Q.2d (BNA) at 1401.Certain relatively minor aspects of the trial court's decision were held "arbitrary" by the Federal Circuit and were set aside.Id. at 1558, 2 U.S.P.Q.2d (BNA) at 1404.The case was remanded for redetermination of damages based on a reasonable royalty computed in accordance with the court's opinion, id., and thereafter was settled.See James R. Norman