Patent infringement matter involving HR and payroll software

Patent infringement matter involving HR and payroll software

Stout was hired as a rebuttal expert by the Defendant's (GreenShades) attorneys at Shutts and Bowen LLP to assess the patent infringement damages in a case that involves HR and payroll software.

Stout was asked to review and consider the work of another damages expert to comment and identify the weaknesses and flaws of the analysis as well as to provide Stout's own assessment of royalties using the fifteen Georgia-Pacific factors. The Plaintiff (Aatrix) accused the Defendant (GreenShades) of infringing software, of which only certain of these modules were infringing. Stout allocated or apportioned revenue through the specific infringing software modules.

Stout's analysis was comprised of two separate components, the calculation of royalty rates and the calculation of a royalty base. The royalty base was an apportionment percentage of the software revenues, as certain features of the software products were patent infringing. Royalty rates for the infringing products were calculated based on the profitability of the products and a profit sharing percentage, which was determined by survey data which showed "14% of customers" demanded the patented features.