Patent infringement suit against a major software provider

A CRA expert worked on behalf of a patent holder in its patent infringement suit against a major software provider. The patent holder was a small California company that held patents related to data compression technology used at the time to expand the capacity of personal computer hard drives. The infringement severely impacted the patent holder’s ability to sell its data compression software. At trial, the CRA expert presented a damages analysis based on estimated lost profits and reasonable royalties. A jury found infringement and awarded the amount of damages recommended by the expert. The matter was settled thereafter with payments by the software provider of $43 million in royalties and $40 million for the patent holder’s stock.