A Question of Damages: Lost Profits, Reasonable Royalties and Exceptional Findings

April 24, 2018 2:45pm

Michael F. Buchanan
Patterson Belknap Webb & Tyler LLP (New York, NY)

Christopher Gerardi
Senior Managing Director
FTI Consulting, Inc. (New York, NY)

Vishal C. Gupta
Steptoe & Johnson LLP (New York, NY)

Rachael P. McClure
Vinson & Elkins LLP(New York, NY)

Hany W. Rizkalla, Ph.D.
Executive Director – IP and Legal Affairs
Glenmark Pharmaceuticals (Mahwah, NJ)


Martin B. Pavane
Vice Chair, Intellectual Property Department Co-Chair, Hatch-Waxman & Biologics Litigation
Cozen O’Connor (New York, NY)

  • Assessing damages in an at-risk launch scenario
    • Entire market value rule (AstraZeneca AB v. Apotex Corp. (Fed. Cir 2015))
  • Determining reasonable royalties and establishing the basis for royalty
    • Looking at market share
    • Identifying the point in time when infringement began
    • Question of prior art relative to damages calculation
  • Gauging lost profits
    • Assessment of profit as a true measure of damages
    • Questions of profitability and sales
    • Exploring circumstances under which lost profits can be denied
  • Calculating damages for exceptional findings
    • Definition of exceptional case under Octane Fitness, LLC v. ICON Health & Fitness, Inc., 134 S. Ct. 1749, 1758 (2014)
  • Understanding the rationale behind the District Court’s exceptional case findings in:
    • Roxane Laboratories Inc. v. Camber Pharmaceuticals Inc. et al., case number 14-cv-04042 (D.N.J. 2017)
    • Par Pharmaceutical, Inc. v. Luitpold Pharmaceuticals, Inc. (D.N.J. 2017)
  • Examining mitigating factors impacting damages award