INTELLECTUAL PROPERTY DAMAGES Guidelines and Analysis Mark A. Glick Lara A. Reymann Richard Hoffman John Wiley & Sons, Inc. 00 Glick FM 10/8/02 8:55 AM Page vi 00 Glick FM 10/8/02 8:55 AM Page i INTELLECTUAL PROPERTY DAMAGES 00 Glick FM 10/8/02 8:55 AM Page ii 00 Glick FM 10/8/02 8:55 AM Page iii INTELLECTUAL PROPERTY DAMAGES Guidelines and Analysis Mark A. Glick Lara A. Reymann Richard Hoffman John Wiley & Sons, Inc. 00 Glick FM 10/8/02 8:55 AM Page iv This book is printed on acid-free paper. ∞ Copyright © 2003 by John Wiley & Sons, Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or other- wise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-750-4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748- 6008, e-mail: 00 Glick FM 10/8/02 8:55 AM Page v ABOUT THE AUTHORS Mark A. Glick has a Ph.D. in economics and a J.D. in law. He is a professor of economics at the University of Utah Department of Economics, where he teaches law and economics and industrial organization. He also serves as Of Counsel with the law firm Parsons Behle & Latimer, where he practices in the areas of intel- lectual property and antitrust. He is a graduate of UCLA, The New School for Social Research, and Columbia University. Lara A. Reymann is a member of the Litigation Department at Parsons Behle & Latimer, where she practices intellectual property law. Ms. Reymann graduated cum laude from Dartmouth College with a B.A. in government and a minor in philosophy. She received her J.D. with honors from the University of Chicago Law School, where she worked in the Mandel Legal Aid Clinic for several years. Richard Hoffman is a director at LECG with over 12 years of experience in account- ing and consulting. He is a CPA and is Accredited in Business Valuations. Rick worked at international accounting firms for approximately 10 years before joining LECG in 2000. He also has been an adjunct professor at the University of Utah. 00 Glick FM 10/8/02 8:55 AM Page vi 00 Glick FM 10/8/02 8:55 AM Page vii Acknowledgments he authors acknowledge the contribution of several colleagues, academics, Texperts, and lawyers. The IP/Antitrust group at Parsons Behle & Latimer pro- vided valuable input into the chapters on litigation and the patent and antitrust inter- face. In particular, Raymond Etcheverry, David Mangum, and Kevin Speirs have been mentors and helped the authors appreciate the importance of damages in intellectual property cases. Also, several patent lawyers and specialists in trademark and copyright law reviewed and commented on the substantive chapters on IP law, in-cluding Margaret McGann, Bill Evans, and Vanessa Pierce. Moreover, we are indebted to indi- viduals outside our respective firms who reviewed chapters within their substantive specialties and provided vital insights. These individuals include Dr. Duncan Cameron, economist with LECG’s Los Angeles office; Dr. Mike Lemmon, finance professor at the University of Utah; and Steve Stauffer of PricewaterhouseCoopers. Ted Tatos, Dianna Gibson, Roger Smith, and Laura McNichols also assisted in the develop- ment and revision of the book. The authors also express appreciation to Robert Goldscheider for his valuable help and thoughtful introduction. Any mistakes or errors are our own. Finally, the authors thank their respective spouses, without whose extreme tolerance and support there would be no book. 00 Glick FM 10/8/02 8:55 AM Page viii