Economic experts in patent litigation are tasked with quantifying damages and ensuring apportionment aligns with legal precedent (e.g., Georgia-Pacific, Finjan v. Blue Coat, Ericsson v. D-Link). Their role is not simply to count revenue but to separate the patented contribution from the non-patented features within a product or service. Tech GoF provides a consistent framework to do this by treating the patented invention as a functional multiplier within a broader economic system.
1. Validity Context
While economic experts do not opine on technical validity, they rely on it to establish damages scope:
- If the patent is valid, economic value flows only from that which is claimed.
- Tech GoF aids by providing a structured model of incremental value attributable to the claimed invention relative to prior art.
2. Infringement Context
Economists must align damages to actual infringing use:
- Tech GoF maps subscriber penetration, usage rates, and adoption curves to patented functionality.
- Quickly identify the connection between infringement and damages.
3. Apportionment Context
This is the economic expert’s core function:
- Principle: Apportion damages to reflect only the incremental benefit of the patented invention, not the value of the entire product.
- Tech GoF Application:
- Break total system gain into functional multipliers (0–10).
- Assign relative weights to each multiplier.
- Attribute only the proportion linked to the patented invention.
4. Economic Metrics in Apportionment
Economists ground their analysis in concrete metrics:
- Revenue Base: Product sales, service subscriptions, or avoided cost savings.
- Functional Impact: Tech GoF multipliers for throughput, coverage, cost avoidance, efficiency.
- Market Adoption: Subscriber penetration, % of use tied to patented feature.
- Incremental Value: Distinction between patented vs. unpatented contributions.
5. Litigation Utility
- Defensible Evidence: Courts require apportionment rooted in economics, not speculation.
- Structured Normalization: Tech GoF avoids “whole product damages” pitfalls by showing mathematically how the patented feature fits within the system.
- Cross-Disciplinary Alignment: Legal, technical, and economic experts can reference the same normalized gain factors.