Compass Lexecon Client Energy Labs Prevails in Patent Infringement Suit Jury Trial

Compass Lexecon Affiliate Dr. Jonathan Arnold Testifies Successfully at Trial

After switching to new counsel in this patent infringement case, Energy Labs retained Compass Lexecon and its affiliate, Dr. Jonathan Arnold, to analyze the economic evidence and provide an expert report on lost profits and reasonable royalty damages and injunctive relief. The dispute between Nortek (the nation's largest player in the multi-billion dollar market for heating, ventilation and air-conditioning systems in commercial and industrial buildings) and Energy Labs involved a large number of patents Nortek had acquired over the years. Even though the evidence was largely in place at the time Energy Labs' new counsel came on board, Compass Lexecon and Dr. Arnold identified design-around defenses and numerous causation problems embedded in the plaintiffs' theory of damages. At trial, Dr. Arnold testified that the seven patents at issue, even if valid and infringed could not have resulted in any price erosion. The San Jose, California federal court jury found four of the seven patents invalid and no infringement. Even though the jury verdict form instructed the jury to stop before filling in the damages amount (because they had not found both validity and infringement), the jury nonetheless reported their view of damages: zero. Dr. Arnold was supported by Dzmitry Asinski and Alice Kaminski of Compass Lexecon's Chicago office. Energy Labs was successfully represented by Adam R. Alper, Michael W. De Vries, Brandon H. Brown, and Nimalka Wickramasekera of Kirkland & Ellis LLP.