United States District Court for the Eastern District of Virginia; Case No. 2:18-cv-00094
Deposition & Trial Testimony | Technology: Cybersecurity
Centripetal called two economic witnesses at trial. The first presented an accounting of the apportioned revenues accused of infringement as well as the applicable reasonable royalty rate. Ocean Tomo’s CEO James E. Malackowski testified as the plaintiff’s final witness and addressed the options Centripetal held pre-infringement for monetizing its proprietary technology, including through licensing, commercializing or selling the asserted patents. Mr. Malackowski then addressed the adverse impact of Cisco’s infringement on Centripetal’s ability to realize the true value of its innovations. This evidence was presented to both put the damages claim into context and provide an economic foundation for Centripetal’s claim of irreparable harm.
Following a twenty-two-day bench trial and hearing on damage evidence, conducted live via a video platform, the Court returned a decision on both past damages and interest totaling $1.9 Billion ($1,903,239,288) as well as future royalties, in a range of $700 Million ($754,701,723) to $1.3 Billion ($1,3050,345,753). The Court’s future royalty is based on rates of 10.0% (of apportioned net sales for the first 3-year term) and 5.0% (of apportioned net sales for the second 3-year term) over the six-year future damages period. The Judgment in favor of Centripetal Networks set a new high-water mark for damages award in a patent infringement case in the U.S, eclipsing a 2016 decision in Idenix Pharmaceuticals Inc., et al. v Gilead Sciences Inc., et al.