IP Infringement: Economist at Deposition

By Christopher Skerritt, M.Ed., MBA, Chief of Economic Services · Published

Preparing the economist for deposition in an intellectual property case centers on the inputs the other side will say were chosen to reach a result: the royalty base and its apportionment, the licenses treated as comparable and the ones set aside, the conversion of lump sums into rates, the design-around or substitute the infringer could have adopted, the market and capacity behind a lost profits claim, and the start and end of the damages period. Because courts decide many of these disputes as questions of admissibility, the deposition also builds the record for a reliability challenge, so the economist should be able to tie every input to a document or to another expert's stated opinion.

Checklist

  1. Confirm each royalty input, apportionment step, and sales figure ties to a produced document or an expert's stated opinion
  2. Prepare the reasons each license was treated as comparable or set aside, and how each adjustment was made
  3. Prepare the result under the opposing base, licenses, and alternatives
  4. Review the technical and survey experts' reports the analysis relies on and the limits of each
  5. Assemble the reliance file: licenses, sales and cost data, forecasts, workpapers, and the opposing report

Questions to ask the economist

Timeline

One to two preparation sessions in the two weeks before the deposition, after the report, the workpapers, and the opposing report are final.

Required documents

Common pitfalls

Frequently Asked Questions

What is the most common line of attack on an intellectual property damages expert?

The royalty base and the licenses. Opposing counsel asks whether the base reaches value the patent did not create, whether each license is comparable in technology, rights, and circumstances, and how a lump sum was turned into a per-unit rate. The expert's answer is a comparability analysis for each license and a sensitivity table that shows the result under the disputed choices.

How does the deposition bear on a later challenge to the testimony?

Courts decide many damages disputes in these cases as questions of whether the opinion rests on sufficient facts or data and on reliable methods reliably applied. Answers that tie each input to the record make that showing, while an answer that the expert assumed a rate or did not read a license can become the basis of a motion to exclude, so preparation goes through each input with the documents behind it.

Should the expert be ready to address the technical and survey experts' opinions?

Yes, at the level the damages depend on them. The economist should know which inputs come from the technical expert, such as whether a design-around was available, and which from the survey expert, such as the value buyers place on a feature, and should be able to show what the result is if either input changes.

References

Request a consultation on Intellectual Property Infringement or call (201) 343-0700. Plaintiff and defense counsel.