Stout was retained as the damages expert on behalf of Defendants’ and testified at deposition regarding the damages recoverable if Defendants were found liable for infringing a patent related to a specific type of labeled nucleotide used in diagnostic products for the detection of human diseases.  Stout provided a rebuttal opinion with regard to the opposing expert’s conclusions, identifying numerous flaws in the analysis.  Stout also determined that if Defendants’ were found liable the appropriate measure of damages was a reasonable royalty.  Since the patent at issue only covered one particular aspect of the accused products, Stout apportioned the revenues from the sale of the accused products to determine the appropriate royalty bases (a different royalty base for each product grouping).  Stout then considered an income approach, a market approach and the Georgia-Pacific factors in assessing the outcome of a hypothetical negotiation between the parties.  Stout ultimately determined different rates for different product groupings which when applied to the apportioned royalty bases resulted in the reasonable royalty damages opinion.    

The case was dismissed after the court ruled on behalf of Defendants on summary judgment.