Royalty for Standard-Essential Patent
This project was completed by Intensity. Intensity joined Secretariat on February 1, 2023.
Background
A large software company was accused of utilizing patented, standard-essential video coding technology in computer operating systems and video game consoles. A patent trust accused the software company of infringing the video coding patent, and the software company asserted multiple claims of patent infringement against the entity that founded the patent trust.
Our Analysis
Intensity provided analysis and expert testimony relating to quantification of patent infringement damages. Intensity determined an economically appropriate reasonable royalty for patents asserted by both plaintiffs and defendants, and we provided testimony at trial on the topic of economic damages.
Intensity delivered its analysis within the economic framework of hypothetical negotiations between the parties for licenses to the patents-in-suit. In part, this involved an assessment of the economic aspects of hundreds of license agreements involving the parties and related technologies. In addition, Intensity investigated the economics of standard-essential patent licensing through patent pool entities including a number of video standards licensed by MPEG LA. Intensity also addressed the economic issue of hold up value resulting from widespread adoption of a technology standard prior to allegations of infringement of a standard-essential patent.
Intensity performed analyses of competition, cost structures, marketing strategies, licensing practices, and partnerships relating to the patents-in-suit. After a comprehensive analysis, reasonable royalty damages were determined by quantifying the royalty payments that the parties would have agreed to after taking into account the economic considerations specific to each company.
Latest Insights
Article | April 6, 2026
Business Interruption Claims Arising from the Middle East Conflict
The current conflict in the Middle East has been as disruptive commercially as it has been geopolitically. Many businesses operating in the region are suffering from a combination of sharp demand declines, blocked routes to market, surging input costs, and physical damage to assets.
Article | April 3, 2026
Competition and Market Structure of the U.S. Cannabis Industry
Although the FTC and DOJ retain jurisdiction to apply federal competition law, the continued federal illegality of cannabis under the Controlled Substances Act has created institutional uncertainty regarding the scope and propriety of federal engagement. In practice, most competition disputes in the sector have been addressed by state attorneys general and private litigants.
See All Insights
Talk to Our Insightful Experts