"Intellectual Property Valuation vs. Intellectual Property Damages: Are They Twins or Distant Relatives?"

The Scenario

You believe it is now the right time in the deposition to challenge the expert witness with the subject matter you have been looking forward to discussing with the expert.  You get the expert to confirm for the record that his opinion as the expert on damages in this intellectual property infringement suit is that the harm caused by the infringement was $50,000,000. Then, you mark as an exhibit the valuation report done three years earlier by a reputable consulting firm, valuing the intellectual property in suit at $5,000,000.  You show the witness the valuation report and ask, “How could there be $50,000,000 in harm when the intellectual property at issue was recently valued at only $5,000,000?

What you didn’t expect was the expert’s extended discussion of the differences between the valuation done three years ago and the calculation of damages done in the litigation.  You thought the valuation report was the document that was going to help settle the case, but now you are not so sure.

The Presentation

Could the expert witness provide reasonable and convincing arguments as to why an analysis of harm in the intellectual property infringement suit could be 10 times greater than the valuation of the same intellectual property done just three years earlier? 

What are the differences between the valuation of intellectual property in a non-litigation environment (e.g., licensing negotiation, IRS reporting requirement, in support of internal management decision-making, bank refinancing proposal) and the determination of damage or harm in intellectual property litigation?

This presentation discusses concepts, assumptions and methods for valuing intellectual property in a non-litigation environment and compares these to concepts, assumptions and methods for determining harm and/or damages in an IP infringement or misappropriation lawsuit. 

The Presenter

Brian Blonder, Director, FTI Consulting

Mr. Blonder has 18 years of experience as a litigation and valuation consultant.  Before joining FTI in August 2001, he was a managing director at a firm providing intellectual property consulting services and prior to that, he was a partner in the dispute analysis services practice of a “big five” accounting firm.  During the past ten years, he has focused his efforts on intellectual property matters including intellectual property litigation damages and intellectual property management and valuation services.  He has testified as to damages in intellectual property matters and non-intellectual property matters in both Federal and State courts.  He has authored articles on intellectual property matters related to the Internet and due diligence in mergers and acquisitions. In addition, he has given numerous presentations on intellectual property including such topics as cost accounting matters in intellectual property damage calculations, valuing intellectual property in bankruptcy, case history and trends in price erosion damages, and irreparable harm in ITC matters.

Date:          Wednesday, July 30, 2003

Location:   The Pinnacle Club
                  Bluebell One
                  555 17^th Street, (37^th Floor)
                  Denver, CO 

Time:         11:45 a.m. to 1:30 p.m.

Cost:          $35.00 (including lunch) at the door or in advance (make checks payable to CBA)

Menu:        Barbequed Shrimp with Marinated Julienne Vegetable Salad or BBQ Grilled Summer Squash and Red Potatoes

CLE:           1 Hour General Credit  (applied for)

Reservations must be made by Tuesday, July 29, 2003 by noon.  To make a reservation, contact Pam Kleiner at Townsend and Townsend and Crew at (303) 571-4000 or by email at pok@townsend.com. 

Please provide your name (and spelling), phone number and menu choice. Payment should be made at check-in at the meeting to the Colorado Bar Association.  Cancellations after noon, Tuesday, July 29, 2003, and no-shows will be billed for the cost of the luncheon.