Royalty Damages Estimated, including Online Survey, for Technology Client in Patent Infringement Case

July 16, 2018

Maxell and Mayer Brown retained two Analysis Group teams to analyze damages due to the infringement of several patents related to technology used in mobile devices. Maxell asserted that several models of ZTE smartphones and tablets infringed patents related to a variety of features, including power management, wireless communications, GPS/mapping functions, audio processing, and processing or display of still and/or video images. 

An Analysis Group team, led by Vice President Lindsay Greenbaum and Manager Ashley Zhou, supported Managing Principal Carla S. Mulhern in evaluating reasonable royalty damages associated with multiple asserted patents. Using a hypothetical negotiation framework, Ms. Mulhern estimated total reasonable royalty damages due to Maxell of $43.3 million.  

A second Analysis Group team, led by Principal Robert Vigil, Vice President Kristina Shampanier, and Associate Duo Jiang, supported affiliated expert Tülin Erdem, Professor of Business and Marketing at New York University's Stern School of Business. Professor Erdem conducted a representative sample online survey of over 1,000 smartphone and tablet owners to assess the awareness and relative importance of a feature disclosed in one of the asserted patents – automatic GPS map orientation. Ms. Mulhern used the results of Professor Erdem's survey to inform her analysis of reasonable royalty damages.

The Jury found that the asserted patents were valid and infringed by ZTE and awarded Maxell damages of $43.3 million, consistent with Ms. Mulhern's reasonable royalty analysis.