KW Economics prepares intellectual property damages analysis for commercial contract dispute cases venued in Washington: what the loss claim consists of, the records that drive it, and a present value built to Washington damages rules and venues. Plaintiff and defense.
A commercial contract dispute becomes an intellectual property damages question when the contract is a license: a patent, trademark, software, or technology license whose royalties were underpaid, a licensee that kept selling after the license ended, or a dispute over the royalty base, the products covered, or the audit rights. The economist reads the license and its royalty provisions, rebuilds the royalty base from the licensee's sales records and any audit findings, and computes the shortfall by period under the contract's own terms. Where a licensee kept using the technology after termination, or an infringement claim is joined with the contract claim, the economist also measures the infringement damages, often a reasonable royalty informed by the license itself, and keeps the contract and infringement measures separate.
Economic analysis and expert testimony on damages in patent, trademark, copyright, and trade secret cases and in license and royalty disputes, for the patentee or the accused infringer and for either side of every other claim. The work measures each remedy the governing statute allows: a reasonable royalty and the patentee's lost profits, including price erosion, apportioned to the patented feature; the defendant's profits, the owner's actual damages, and corrective advertising in a trademark case; actual damages and the infringer's profits in a copyright case, where the infringer carries the burden of its deductible expenses and of the profit owed to other factors; and actual loss, unjust enrichment, or a reasonable royalty for a misappropriated trade secret.
The size of the claim depends on the contract's remaining term, the profit margin the business would have realized, and how much of the lost volume was or could have been replaced. Incremental cost treatment is the usual battleground: whether a given cost would have been avoided when the revenue disappeared changes the margin and therefore the loss. For a new venture or a contract without a performance history, the reasonableness of the projected revenue is the central dispute, and the period over which lost profits are claimed is scrutinized against the contract's terms and the market.
Washington courts ask whether the methodology behind an expert opinion is generally accepted in the relevant professional community and whether the economist is qualified by training and experience to apply it, leaving disputes over the inputs to cross-examination. The methods of forensic economics are published and long used, so the examination of a damages report usually turns on its assumptions and their support in the record.
Highest court: Washington Supreme Court. Court system: courts.wa.gov.
Federal venues: Western District of Washington, Eastern District of Washington.
Washington applies pure comparative fault in a negligence-based claim, reducing the award in proportion to the plaintiff's share. Prejudgment interest is generally limited to liquidated sums, such as an unpaid contract balance, and not awarded on unliquidated damages. Statutory limits on noneconomic damages have been held unconstitutional and economic damages are not subject to a general statutory limit, so the economist's figure enters the case at its full present value, with the liquidated components identified separately.
We issue the final report on the disclosure schedule and provide deposition and trial testimony, critique of the opposing damages analysis, and updated calculations as the court construes any patent claims and the record develops.
A commercial contract dispute becomes an intellectual property damages question when the contract is a license: a patent, trademark, software, or technology license whose royalties were underpaid, a licensee that kept selling after the license ended, or a dispute over the royalty base, the products covered, or the audit rights. The economist reads the license and its royalty provisions, rebuilds the royalty base from the licensee's sales records and any audit findings, and computes the shortfall by period under the contract's own terms. Where a licensee kept using the technology after termination, or an infringement claim is joined with the contract claim, the economist also measures the infringement damages, often a reasonable royalty informed by the license itself, and keeps the contract and infringement measures separate.
Washington courts ask whether the methodology behind an expert opinion is generally accepted in the relevant professional community and whether the economist is qualified by training and experience to apply it, leaving disputes over the inputs to cross-examination. The methods of forensic economics are published and long used, so the examination of a damages report usually turns on its assumptions and their support in the record. Commercial Contract Dispute cases venued in Washington are heard in the Superior Court (General jurisdiction; one in each of 39 counties; all civil, criminal, and domestic matters), with final appeals to the Washington Supreme Court. Matters within federal jurisdiction proceed in the Western District of Washington and Eastern District of Washington.
Washington applies pure comparative fault in a negligence-based claim, reducing the award in proportion to the plaintiff's share. Prejudgment interest is generally limited to liquidated sums, such as an unpaid contract balance, and not awarded on unliquidated damages. Statutory limits on noneconomic damages have been held unconstitutional and economic damages are not subject to a general statutory limit, so the economist's figure enters the case at its full present value, with the liquidated components identified separately. The report presents past and future amounts separately, states every rate and table with its source, and shows the result under the alternatives the other side is likely to argue, so counsel can apply the Washington rules to a documented figure.
Request a consultation on IP Damages or call (201) 343-0700. Plaintiff and defense counsel.