January 29, 2023

Volume XIII, Number 29

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Federal Circuit Criticizes Excessive Damages Awards

In VirnetX, Inc. v. Cisco Systems (September 19, 2014 – Federal Circuit), the Federal Circuit reversed a patent infringement award of $368 million on the grounds that the damages were based on the entire accused product rather than the value of the patented features.  The Court criticized VirnetX, Inc.’s expert for basing his damages estimate on the entire price of the iPhone, rather than the few features that were held to be infringing. 

The Court reiterated the requirement that damages be based on the “smallest salable unit” that is infringed, but added that “A patentee’s obligation to apportion damages only to the patented features does not end with the identification of the smallest salable unit if that unit still contains significant unpatented features.”  This is the latest in a line of cases in which the Federal Circuit has curtailed damages awards.

© 2023 Honigman Miller Schwartz and Cohn LLP National Law Review, Volume IV, Number 317
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William Berndt  Honigman Miller trade secrets false advertising trade secret law
Partner

 Mr. Berndt is a trial lawyer with substantial experience in state and federal courts across the country. He focuses his practice on trade secret and false advertising claims. He represents businesses and senior executives in disputes relating to noncompetition agreements, trademark and copyright, fraud, professional liability, internal investigations, and general business and commercial litigation. Mr. Berndt has first-chair experience in trials, arbitrations and other proceedings.

  • Litigates requests for emergency relief such as temporary...
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David L. De Bruin appellate attorney patent litigation USPTO Honigman Chicago
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Mr. De Bruin is a seasoned first-chair trial and appellate attorney. He concentrates his practice on patent litigation and related proceedings before the United States Patent and Trademark Office. Mr. De Bruin successfully argues legal issues, as well as explain the most complex technology to judges and juries.

  • Tries patent cases in a variety of venues before judges and juries and has successfully argued numerous patent cases before the Federal Circuit Court of Appeals
  • Represents clients in a wide array of technology ranging from mechanical and electrical devices...
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Marcus D. Fruchter lawyer Honigman Chicago office litigation specialist
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Mr. Fruchter defends or initiates litigation when it is inevitable and avoids lawsuits where possible. He provides zealous and creative representation that protects his clients’ legal rights and advances their strategic objectives. Mr. Fruchter litigates in state and federal courts across the country, and he has handled matters involving international and cross-border issues.

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Nicholas A. Gowen Honigman Chicago complex commercial litigation attorney t
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Mr. Gowen represents companies, individuals and law firms in disputes, including those involving intellectual property, trade secrets, unfair competition, employment matters and other business litigation matters. He approaches litigation with an eye toward results; understanding that advancing his clients’ litigation strategies should fit within their overall business interests.

  • Counsels businesses on ways to avoid litigation and resolve disputes using alternative measures
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Steven A Weiss Litigation attorney Honigman Law firm Chicago ediscovery
Leader, Complex Commercial Litigation Practice Group

Mr. Weiss provides advice on a wide variety of business litigation for companies and business people. He is focused on resolving business disputes with particular experience handling intellectual property, breach of contract, trade secret, employment and covenant not to compete matters. Local and national companies and individuals retain Mr. Weiss to handle a full range of business disputes because they trust his judgment and litigation skills.

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