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.”