The Value of Litigation Support in Intellectual Property Disputes

Richard Warner

Editor’s note: Ryan Nguyen, CPA, Senior Forensic Manager, and Gina Lara, MBA, CFP ®, Tax and Forensic Accounting Manager, recently wrote an article for the Orange County Business Journal in the “Intellectual Property” special supplement.  Excerpt from the article:

In litigation support, win or lose isn’t as important as by how much. This point is becoming especially significant in intellectual property disputes, where the median damages award in patent litigation increased more than 65% over prior year to $10.2 million in 2017.  Here are some examples of what we have seen.

Trademark Infringement

Recently, we were engaged by Defendant’s counsel to provide calculations related to a company that imported and sold purportedly “knock-off” designer apparel.  Plaintiff sued the company in Federal Court alleging copyright, trademark, and trade dress infringement.  Defendant was found liable for damages arising from three years of sales activity.  Since the company maintained poor accounting records, Smith Dickson’s work involved reconstructing records from handwritten notes, testing the accuracy of the information, identifying sales data and deductible incremental costs, and determining the unjust enrichment of Defendant.