Loggerhead Tools, LLC v. Sears Holdings Corp., No. 12-CV-9033, Slip Op. (N.D. Ill. Sep. 20, 2016) (Darrah, J.).
Judge Darrah granted in part defendant Apex’s motion to exclude plaintiff Loggerhead’s damages expert’s testimony in this IP case involving the Bionic Wrench.
Of note, the Court held as follows:
- Loggerhead’s lost profits analysis was not fatally flawed because the expert could not calculate the lost profits amount “to a reasonable probability.” That limitation in the analysis goes to its weight, not its admissibility.
- It is impermissible to use a price erosion analysis to increase the expert’s reasonable royalty calculation.
- The expert’s reliance upon “increased manufacturing costs” to increase the reasonable royalty was impermissible because the expert admitted that he was “unable to calculate the extent of excess manufacturing costs to a reasonable probability.”
- The expert’s reliance upon loss of goodwill was impermissible because there was no basis for showing that the alleged loss resulted in reduced sales or otherwise impacted the market.
- It was proper to consider both Apex and its sole customer at the time the alleged infringement began in the hypothetical reasonable royalty negotiation.