LifeNet, Inc. vs. Musculoskeletal Transplant Foundation, Inc.
Economic Advice in Litigation
The Situation
In 2007, LifeNet, Inc., a leading non-profit organ and tissue bank, claimed that rival Musculoskeletal Transplant Foundation (MTF) violated three of its patents. Two patents involved a process for demineralizing bone, while the third described a process for cleaning bone grafts. The case is LifeNet, Inc. vs. Musculoskeletal Transplant Foundation, Inc., US District Court for the Eastern District of Virginia, Richmond Division, Civil Action No. 3:06-cv-00387 (HEH).
NERA's Role
Counsel for LifeNet retained NERA Special Consultant Dr. Richard Rozek to assess damage issues related to the alleged infringements. Dr. Rozek prepared an expert report and testified at the trial on the reasonable royalty rates for the patents at issue and the appropriate sales base for applying the royalty rates.
The Result
The jury found that MTF violated LifeNet's three patents and that the infringement of one of the patents was willful. The jury awarded $18.3 million for the two bone demineralization patents and $4.6 million for MTF's infringement of LifeNet's bone-cleaning technology. The total award was the second largest verdict in the state of Virginia during 2007.
On 4 April 2008, the Court denied MTF's request for a new trial and ordered MTF to pay LifeNet $23,037,945 in damages as determined by the jury.
