In Uniloc USA, Inc. v. Microsoft Corp., 632 F.3d 1292 (Fed. Cir. 2011), the Federal Circuit issued a landmark Daubert ruling that fundamentally changed how Computers & Technology Expert Witness damages testimony is evaluated in patent litigation. The decision vacated a $388 million verdict and rejected one of the most widely used royalty-rate methodologies in the technology industry.
Background and Parties
Uniloc USA, Inc. owned U.S. Patent No. 5,490,216, directed to a software-based product activation method designed to deter unauthorized copying. Uniloc sued Microsoft Corporation, alleging that Microsoft’s Product Activation feature in Windows XP and Office product lines infringed the asserted claims. The case proceeded to a jury trial in the District of Rhode Island, where the jury found infringement and awarded Uniloc approximately $388 million in reasonable royalty damages.


