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March 28, 2015

DSU Medical Corporation v. JMS Co., Ltd., et al.

This patent infringement matter involved patented technology concerning needle guards which are plastic devices that protect medical professionals from accidental needle sticks. An interesting aspect of this case was the legal precedent that bars recovery of lost profits by a non-commercial owner of a patent who licenses its technology to a wholly-owned non-exclusive licensee. While the patent holder is arguably the residual claimant of the licensee’s profits, case law appears to bar recovery of such losses unless the licensee is an exclusive licensee. In this instance, the plaintiff did not make its licensing agreement an exclusive one until well into the alleged damage period.

Econ One was retained by counsel for the defendants to analyze the plaintiff’s damages claim. Charles Mahla submitted an expert report, provided deposition testimony, and testified at trial in this matter. At the conclusion of the trial, the jury awarded some damages to the plaintiff but they were not based on the plaintiff’s lost profit claim.

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