1. At FOSS
Patents, Florian Mueller published an interesting post on Saturday on the Oracle v. Google
copyright damages matter pending before U.S. District Judge Alsup in the
Northern District of California. Though it's a copyright case, the
resolution of the damages issues should be of interest to patent
scholars as well. According to the post, "Oracle . . . argues that a
disgorgement analysis should not consider non-infringing alternatives
("NIAs")." Although I don't study copyright damages as
much as I used to, and would like to review whatever authority Oracles and/or
the court cites in favor of this position (something I haven't done yet), that's not
my understanding of the applicable law--though it is the Federal Circuit's
current understanding in U.S. design patent law, pending Supreme Court
review in Samsung v. Apple, where the relevant statutory language can be read as entitling the plaintiff to recover the defendant's total
profit from sales of infringing goods. In any event, I heartily agree
with Mr. Mueller that as a matter of policy such a rule is misguided.
2. At Sufficient Description, Norman
Siebrasse published a post on TearLab Corp. v. I-Med Pharma Inc., 2016
FC 350, a recent Canadian decision in which a court denied a preliminary
injunction on the ground that, inter alia, that the "mere
difficulty of calculating damages does not constitute irreparable
harm." Professor Siebrasse argues that "that there are
practical reasons why evidence of the accuracy of damages assessment is
unlikely to be forthcoming" at the preliminary injunction stage, and that
requiring too strict a showing of irreparability might put patent owners in a
bind if, eventually, they wind up trying to prove their damages at
trial. These are valid points that deserve further consideration.
For what it's worth, I'd inclined to think that mere difficulty in calculating
damages that are in principle calculable normally shouldn't count as
"irreparable harm"; damages are often difficult to calculate,
and there's always going to be a risk of error. Rather, "irreparable harm" could rest on the
likelihood of incurring categories of harm that tend towards being inherently incalculable,
such as interim losses of market share that might be hard to make up for ex post or losses of
consumer goodwill. (And I note that the plaintiff did allege these harms
as well, though apparently the evidence of their existence or incalculability
didn't move the judge on the record presented, see opinion para. 35.) But I need to think about
these matters further.
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