The U.S. Court of Appeals for the Federal Circuit overturned a $20 million trial verdict against Google in a patent lawsuit filed by energy-management company EcoFactor concerning Google's Nest smart thermostats. In an 8-2 en banc decision, the court found that the trial court abused its discretion by admitting EcoFactor's damages expert testimony, which lacked sufficient evidentiary basis under Federal Rule of Evidence 702 and the Daubert standard. The ruling highlighted that the damages expert's claim of a per-unit royalty based on three prior license agreements was unreliable. The Federal Circuit ordered a new trial, emphasizing the need for stricter scrutiny of patent damages testimony. Legal experts anticipate that this decision will prompt more challenges to the admissibility of damages experts in patent litigation. Separately, the Federal Circuit also addressed issues related to patent eligibility and invalidity in other cases, including the rejection of an AI-driven medical patent on eligibility grounds and the invalidation of parts of an imaging-system patent due to prior disclosures from Mayo Clinic research.
The Federal Circuit ordering a new trial in a patent case against Google and finding the plaintiff's damages expert unreliable is likely to lead to greater scrutiny of patent damages testimony and more attempts to get it thrown out, attorneys say. https://t.co/AS1m2qhPG4
Gatekeeping Reasserted: The Federal Circuit’s En Banc Ruling in EcoFactor v. Google https://t.co/fsy9Fj6PqB | by @BakerHostetler
The Federal Circuit said a tribunal erred by not invaliding parts of an imaging-system patent issued because of disclosures in a paper written by a scientist at the Mayo Clinic describing using an X-ray beam to view rodent organs. https://t.co/hnLJrNafMR