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
News | July 9, 2025
Why Funder Forecasts Don’t Belong in Royalty Analysis
This article originally appeared on Law360 on June 24, 2025. In a recent article published by Law360, Managing Director Rick Eichmann explores the economic reasoning behind the U.S. District Court’s decision in Haptic Inc. v. Apple Inc. and why prelitigation funding forecasts should not be conflated with royalty analyses in patent litigation. Eichmann explains how models developed for […]
Article | July 9, 2025
SFO’s ‘Cast-Iron Guarantee’ on Self-Reporting Comes With Fine Print
Ben Boorer, writing for Corporate Compliance Insights, examines the UK Serious Fraud Office’s clearest commitment yet to corporate self-reporting, offering a “cast-iron guarantee” of DPA negotiations for companies that self-report and cooperate. The guidance sets out defined timelines intended to bring greater predictability, but uncertainties remain around how much investigation is expected before reporting, what […]
Article | July 9, 2025
Strengthening Export Control Compliance: Advanced Strategies for Third-Party Audits
This article first appeared on Law360 on July 7, 2025. In a recent Law360 article, Michael H. Huneke of Hughes Hubbard & Reed and John Rademacher and Abby Williams of Secretariat explore advanced strategies for strengthening export control compliance through improved third-party audits. U.S. technologies continue to be diverted to foreign adversaries, often through networks of resellers […]
See All Insights
Talk to Our Insightful Experts