In a series of related actions, Judge Richard G. Andrews denied Defendants’ motion to exclude portions of the opinion of Plaintiff’s damages expert, following oral argument and a Daubert hearing on the matter. Delaware Display Group LLC, et al. v. Lenovo Group Ltd., et al., C.A. No. 13-2108-RGA (D. Del. Jan. 18, 2017). Defendants argued that the expert failed to properly apportion between patented and unpatented features, that he improperly assigned 100% of his incremental profit to the licensor, and that his royalty rate was improper because it was for a portfolio license where only two patents were asserted in the case. Id. at 6.
As to apportionment, the Court was satisfied from the expert’s testimony at the Daubert hearing that his methodology for apportionment was reliable, “extensively analyz[ing] the patented features and [taking] out what he believed were unpatented features,” and Defendants’ expert’s approach to apportionment did not appear to be “substantially different.” Id. The Court reached the same conclusion as to the expert’s incremental profit methodology, finding it “logical,” not applying an improper “rule of thumb,” and apparently consistent with the approach of the expert of one Defendant. Id. Finally, the expert’s portfolio license methodology was sufficiently reliable. “His belief that during the hypothetical negotiation, one could get a license to both patents without there being royalty stacking, is logical. (Tr. 60:23-61:21, 103:6-104:7). His approach is consistent with that of [one of the Defendant’s experts]. There is no impermissible royalty stacking.” Id. at 6-7.
Having concluded that Defendants’ concerns with the expert went to the weight, rather than admissibility, of the testimony, the Court denied the Daubert motion.
Delaware Display Group LLC, et al. v. Lenovo Group Ltd., et al., C.A. No. 13-2108-RGA (D. Del. Jan. 18, 2017)