Judge Gilstrap Rules Rate Adjustment for Earlier Access Was Improper

Judge Gilstrap granted-in-part Motorola's Daubert motion to exclude portions of Saint Lawrence's expert report.  The Court ruled in favor of Motorola on one issue out of several that they raised.  The relevant issue relates to an upward "duration" and "early access" adjustment that Saint Lawrence made to its royalty rate.  The court explained that the adjustment was either improper or was not supported in the evidence.

Saint Lawrence argued that a reasonable royalty license would provide earlier and longer access to the technology when compared with comparable licenses.  Judge Gilstrap ruled that Saint Lawrence's expert did not explain why the increase was appropriate in light of the fact that a running royalty, by its nature, adjusts the total royalty obligation to reflect the duration of an agreement.  He also pointed to portions of Saint Lawrence's expert report that contradict the view that a defendant would value early access.

-- Saint Lawrence Communications, LLC v. ZTE Corporation et al, 2-15-cv-00349 (EDTX), Doc 441.




Source: Docket Navigator

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