High-Technology Medical Devices

A leading manufacturer of high-technology medical devices retained Dr. Matthew Lynde, a vice president of Cornerstone Research, to evaluate the patent infringement damages claims of the plaintiff, another manufacturer of such devices.

A leading manufacturer of high-technology medical devices retained Dr. Matthew Lynde, a vice president of Cornerstone Research, to evaluate the patent infringement damages claims of the plaintiff, another manufacturer of such devices.

The plaintiff’s patents were ultimately found to be invalid.

Based on his analysis of the process by which hospitals select between manufacturers of this device, Dr. Lynde found that hospital purchasing decisions would not have changed significantly and thus defendant sales would not have been lower absent the alleged infringement. Dr. Lynde also showed that the plaintiff did not compete in all of the same geographic markets as the defendant, and therefore, could not have lost sales in those markets. Given the magnitude of lost sales that the plaintiff claimed, Dr. Lynde also concluded that the plaintiff would have been unable to produce the additional devices without costly investment in new production capacity. Finally, Dr. Lynde used evidence on the cost of developing an alternate non-infringing technology to determine an upper bound on the royalty rate that the defendant would have agreed to pay for the use of the plaintiff’s technology. The plaintiff’s patents were ultimately found to be invalid.