Uniloc USA, Inc. v. Microsoft Corp.
United States Court of Appeals for the Federal Circuit
632 F.3d 1292 (Fed. Cir. 2011)
Uniloc (plaintiff) won a jury verdict of $388 million against Microsoft (defendant) for infringing its software anti-piracy registration patent, based on expert Dr. Gemini's testimony applying the generic "25 percent rule" to estimate a reasonable royalty and the entire market value rule to verify it; the district court granted Microsoft a new trial on damages regarding the entire market value rule but denied it as to the 25 percent rule, and Uniloc appealed.
Whether testimony attempting to establish patent infringement damages is admissible if it does not tie its proffered reasonable royalty base to the facts and hypothetical negotiation of the particular case.