Examples of Our Work [Intellectual Property]

Price Erosion

When someone gives away your product for free, what are the economic consequences?

Engagement
In this patent infringement and antitrust case, Gleason’s client was counsel for a small venture capital-financed technology company that developed a successful patented product and customer base. The alleged infringer was a large multinational publicly traded company charged with knocking-off the technology and giving it for free to customers that purchased other products and services. According to the plaintiff, this lowered or “eroded” the price it could charge for its patented product by more than 100 percent.

Gleason’s Role
Our job was to estimate the financial damages resulting from the infringement. To calculate damages, we analyzed the market demand for the product and determined the amount of lost profits the patent holder would have realized but for the infringement, including price erosion. In addition, we estimated reasonable royalties that the patent holder could have earned if the defendant had licensed the right to distribute the allegedly infringing technology.

Result
Counsel is prepared to litigate or reach a settlement with the defendant based on a thorough analysis of the reasonable damages owed to the plaintiff.