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Intellectual PropertyFeaturesLitigationPatent LitigationThe Intellectual Property Strategist

Even the Value of the Smallest Salable Unit Must Be Apportioned

By Matthew Siegal

In Finjan, Inc. v. Blue Coat Sys., Inc., 16-2520 (Fed. Cir. Jan. 10, 2018), the Federal Circuit ruled that basing a reasonable royalty calculation on the “smallest salable unit” does not obviate the need to apportion damages to the patented contribution within that unit.

The Federal Circuit vacated a portion of the damages awarded to Finjan by the jury in its patent infringement case against Blue Coat. Finjan's '844 patent (U.S. Pat. No. 6,154,844 titled System and Method for Attaching a Downloadable Security Profile to a Downloadable) claims, inter alia, a method for providing computer security to a local network by attaching a security profile to downloadable content before the content is made available to a user in the local network. For example, the invention can help safeguard a business computer system in the event an employee tries to download content from the Internet that is infected with malware.

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