Calculating Damages

Edgeworth Partner Dr. Gregory K. Leonard was retained by plaintiff, Edwards Lifesciences, to calculate damages from the alleged infringement by Medtronic of Edwards Lifesciences’ U.S. Patent No. 8,002,825, which relates to fundamental technology covering transcatheter aortic valve replacement (“TAVR”) devices. Both Edwards Lifesciences and Medtronic manufacture and sell TAVR devices worldwide that are used to treat aortic stenosis, which is a condition traditionally treated using open heart surgery. With the development of TAVR devices that can be implanted in a less invasive manner, a wider set of patients suffering from aortic stenosis can be treated and the prognosis for these patients is greatly improved.

Edgeworth’s calculation of damages included both a lost profits and reasonable royalty analysis. The methodology implemented by Edgeworth to calculate lost profits damages was based on an analysis of the competition between Edwards Lifesciences and Medtronic in each of the relevant geographic markets that explicitly accounted for the differences in product features between their respective TAVR products. Furthermore, Edgeworth’s analysis also accounted for Medtronic’s next-best, non-infringing alternative; in this case, shifting the production of its TAVR devices outside of the United States. The methodology employed to calculate reasonable royalty damages was based on an analysis of Medtronic’s maximum willingness to pay for a license to the patent-in-suit, which also accounts for its next-best, non-infringing alternative, and Edwards’ minimum willingness to accept for granting a license to the patent-in-suit.

At trial, Dr. Leonard, presented to the jury the methodology and conclusions of Edgeworth’s damages analysis. Ultimately, the jury awarded the exact damages figure calculated by Edgeworth.


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