A firm that provided commercial applications of digital encryption technology for use in Internet commerce was sued for alleged patent infringement. Retained by counsel for the defendant, Cornerstone Research analyzed the success of the technology and licensing agreements and assessed the calculation of damages allegedly sustained by the plaintiff. We demonstrated that the plaintiff had no basis for its damage claims. The trial judge agreed and excluded a key portion of plaintiff's damage claims during the trial. The jury found no liability and no damages.
Patent InfringementA biotechnology company alleged that a rival infringed its patents for a product used to analyze complex genetic information in biomedical research. Retained by the defense, Cornerstone Research reviewed licensing agreements within the biotechnology and related industries to determine a reasonable royalty rate on the technology covered in the disputed patents. We also evaluated the opposing expert's report and outlined several significant flaws in its methodology. The case settled on confidential terms, and all pending lawsuits were dismissed.
Copyright InfringementIn a landmark case for the computer software industry, the plaintiff accused a rival of infringing its copyright on several features of a software product. Defense counsel retained Cornerstone Research to develop damage estimates and to evaluate the plaintiff's damage models. Working with an interdisciplinary team of economics, marketing, accounting, and software industry experts, we used econometric analysis, industry research, surveys, and cost-accounting models to estimate the effect of the allegedly infringing features on product sales, costs, and profits. The First Circuit found for our client, concluding that the allegedly infringing features were not copyrightable. Its decision was upheld by the Supreme Court on appeal.
Trademark InfringementWhen a software provider sued a competitor for wrongful misappropriation of its mark, plaintiff's counsel retained Cornerstone Research to review the defendant's advertising and marketing programs and to estimate the cost to correct the mistaken impressions created by those programs. When the case went to trial, the jury awarded substantial compensatory and punitive damages to our client, and the court permanently enjoined the defendant from using our client's mark.
Trade SecretsA leading telecommunications equipment company sued a startup for alleged misappropriation of trade secrets involving fiber-optic networks. Defense counsel retained Cornerstone Research to assess liability and damages. On liability, we worked with an economics professor to predict the effects of the plaintiff's attempt to restrict employee mobility and concluded that it would likely hinder innovation and economic growth in the area. On damages, our royalty and finance experts demonstrated that the plaintiff's proposed damages were highly speculative and had vastly underestimated the risk inherent in a startup. The case settled shortly before trial on terms favorable for our client.
Breach of Technology-Sharing AgreementOne high-technology firm sued another for an alleged breach of a joint software development agreement. Counsel for defendant asked Cornerstone Research to evaluate damages, if any, and to assess the validity of the plaintiff's damage study, which included projections of future revenue. Working with experts in software development and venture capital, we showed that the plaintiff's damage claims were significantly overstated. The court found for our client on summary judgment.