Royalty in Consumer Electronics
This project was completed by Intensity. Intensity joined Secretariat on February 1, 2023.
Background
A patent holding company sued a large number of well-known manufacturers and retailers of webcams for alleged unauthorized use of a camera clip patent. The patent generally relates to a technology for supporting webcams on computer monitors. The patent holder, as a non-practicing entity, sought a reasonably royalty as compensation for the alleged infringement.
Our Analysis
Intensity quantified economic damages for the alleged unauthorized use of the patent holder’s camera clip technology. Intensity determined an economically appropriate reasonable royalty and quantified the relative economic contribution of the patented camera clip technology relative to the accused webcam products.
As part of a reasonable royalty analysis, Intensity analyzed the economic aspects of contracts containing a license to the patent-in-suit. Intensity also calculated an economic apportionment between the patented feature and other features contributing to the economic value of a webcam product. This analysis involved quantification of the profits from a webcam that are attributable to a camera clip. As another layer to the analysis, Intensity calculated the profits from a camera clip that are attributable to the patented technology based upon case-specific economic factors.
Intensity performed an economic evaluation of the supply chain for webcams to identify the step in the supply chain where value from the camera clip technology was added. Intensity also analyzed economic substitution, marketplace competition, product differentiation, sales, profitability, and other economic considerations relating to a reasonable royalty.
Latest Insights
Article | June 13, 2025
Statistics Tools Chart A Path For AI Use In Expert Testimony
As AI and machine learning tools become more common in expert workflows, courts are increasingly scrutinizing their use under Federal Rule of Evidence 702. In The Risks and a Path Forward for AI and Machine Learning Tools in Expert Testimony, we examine recent cases where AI-assisted opinions were excluded due to concerns about reliability, transparency, and expert understanding.
Article | June 11, 2025
Public Cos. Must Heed Disclosure Risks Amid Trade Chaos
Ongoing uncertainties caused by the trade war and President Donald Trump’s evolving stance on tariffs and trade restrictions, including sanctions and export controls, have exponentially escalated financial reporting pressures on public companies.
In this article, we discuss the key financial reporting and disclosure risks, as well as takeaways, for public companies as they navigate significant market instability in international trade.
See All Insights
Talk to Our Insightful Experts