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Litigation Support
Solution
for Large Law Firm
| Challenge |
A large law firm
(“LLF”),
with more than 1400 attorneys in
offices around the world, represented a client who brought a patent
infringement lawsuit against a multinational supplier of a pay TV
access-control system and against a pay TV operator that had adopted this
system. The system was launched by the operator but later replaced prior
to completion of the operator’s initial installation plans. LLF was
looking for expert analysis to assess the value of the patent.
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| Solution |
In
collaboration with a technology specialist at another consulting firm, PDS
Consulting determined through careful review of documents provided under
discovery that the defendant had expected substantial financial benefit to
accrue from use of the pay TV control system, including cost savings and
reduced subscriber churn to competitive services. These financial benefits
were shown to derive inextricably from defendant’s decision to employ
the allegedly-infringing system. We calculated the value of the patent as
the present value of cash savings attributable to use of the patented
system, discounted to present value as of the time the system was
launched, plus the value of subscribers retained due to use of the system.
Reasonable royalties were calculated as a percentage of the patent value.
Our analysis was supported by our industry knowledge and understanding of
the technologies; these capabilities were lacking in the accounting expert
employed by counsel for the defendant. Defendant agreed to settle the
case. |
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