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<i>Lucent v. Gateway</i>

By Michael K. Milani and Eric Carnick

On Sept. 11, 2009, the U.S. Court of Appeals for the Federal Court (“CAFC”) issued an opinion in the case of Lucent Technologies Inc. et al. v. Gateway Inc. et al. (“Lucent“). In its ruling, the CAFC found that “the damages evidence of record was neither very powerful, nor presented very well by either party” and that the plaintiff's damages calculation “lacked sufficient evidentiary support.” The CAFC therefore vacated the district court's award and remanded the case for a new trial on damages.

In vacating the damages award, the CAFC provided insight into its current views on issues often considered in connection with the determination of damages in patent infringement litigation. While the case does not establish any fundamentally new methodologies, it does discuss a number of intellectual and economic issues related to the determination of reasonable royalty damages.

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