Judge Sue L. Robinson: Calculating Pre-Judgment Interest, and Other Damages-Related Inquiries

District Judge Sue L. Robinson has issued a decision in the long-running Cordis/Medtronic litigation clarifying the standards and procedures surrounding several damages issues common to patent litigation.

In yesterday’s memorandum opinion, the Court first addressed pre-judgment interest, holding that the proper measure is the prime rate of interest, rather than the U.S. treasury-bill rate, compounded quarterly. The Court also considered the award’s tax treatment, noting that because “taking into account the tax consequences of a damages award best reflects reality,” the final interest award should be based on the “after tax amount of damages.”

Finally, the Court rejected a request for a new damages trial based on an intervening arbitration decision that recognized the defendant as a licensee. According to the Court, an earlier stipulation of infringement in the litigation precluded such a request: “The Court declines to allow [defendant] out of its agreement based on later, business-related proceedings of which it was not a part.”

Cordis Corp. v. Medtronic Vascular Inc., C.A. No. 97-550-SLR (D. Del. Sept. 15, 2008).

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