Intellectual Property

ARG economists and data scientists have assisted companies and their counsel in addressing a range of intellectual property issues. We often calculate lost profits and determine reasonable royalties in infringement matters, and calculate the economic value of copyrighted material in royalty allocation proceedings.  We also assist counsel and their clients in responding to complaints of alleged copyright, patent, and trademark infringement.

ARG combines industry facts with economic, marketing, and financial tools to assess claims arising in intellectual property litigation and licensing disputes. We have experience evaluating loss causation, lost profits, and unjust enrichment claims.

Representative Engagements

  • For a fitness equipment manufacturer involved in a patent infringement and unfair competition dispute, ARG economists developed an econometric study of lost sales due to an alleged infringement and performed a mathematical analysis of the extent of infringement. Our critique of the opposing expert’s economic damages calculation contributed to a jury decision of zero damages despite a finding of infringement.
  • Counsel for a performance rights organization (“PRO”) that licenses the public performance rights to the copyrighted musical works of its members, retained ARG experts to assess the economic value of a blanket license granting certain companies non-exclusive rights to perform music from the PRO repertory over their Internet sites.  We prepared an expert report describing our economic and benchmark analyses to determine a reasonable license fee and our analysis of the role of music performances in increasing company revenues and profits.
  • In a patent infringement matter in the biotechnology industry, ARG economists examined the importance of “first-mover advantage” and the effect of technology diffusion resulting from infringement on price erosion and volume changes.
  • In a patent infringement matter in the toy industry, ARG economists evaluated lost profits and reasonable royalty damages associated with the alleged infringement of a feature of a popular toy line.  We examined allocation issues associated with calculating a reasonable royalty and also evaluated lost profits.
  • In a copyright infringement matter involving software applications, ARG economists assessed the appropriate fee for a license agreement between the parties after analyzing the importance of the software to the company, alternatives, and the relationship between the parties.
  • ARG economists analyzed lost profit and reasonable royalty damages associated with trade secret misappropriation and breach of contract in the toy industry.  We were asked to calculate the value of an invention that was allegedly taken by the Plaintiff and analyzed that value using a reasonable royalty as well as a lost profits methodology.
  • ARG economists calculated a reasonable royalty in a patent infringement matter involving several of the largest electronics companies.  A significant element of the analysis was determining the appropriate allocation between the patented and non-patented features.