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Pharmaceuticals, Inc., 509 U.S. 579, 589-90 (1993).2 Daubert requires the district court

ensure that any scientific testimony “is not only relevant, but reliable.” Id. at 589; see

also

Kumho

Tire

Co.

v.

Carmichael,

526

U.S.

137,

141-42

(1999).

When

the

methodology is sound, and the evidence relied upon sufficiently related to the case at

hand, disputes about the degree of relevance or accuracy (above this minimum

threshold) may go to the testimony’s weight, but not its admissibility. Knight v. Kirby

Inland Marine Inc., 482 F.3d 347, 351 (5th Cir. 2007); Moore v. Ashland Chem. Inc., 151

F.3d 269, 276 (5th Cir. 1998) (en banc).

On appeal, Microsoft challenges the expert testimony by Dr. Wagner, i4i’s

damages expert. Wagner opined that a reasonable damages award would be $200

million dollars, based on a hypothetical negotiation between i4i and Microsoft at the time

the infringement began. To come up with the $200 million figure, Wagner calculated a

royalty rate ($98), then multiplied that rate by the number of Word products actually

used in an infringing manner (2.1 million).

At trial, the parties hotly disputed the correctness of the $98 royalty rate.

Microsoft argued that this rate was exorbitant given the price of certain Word products,

which could be as little as $97. As further evidence of its unreasonableness, Microsoft

pointed out that the rate resulted in a total damages amount ($200 million) greatly

exceeding the $1-$5 million Microsoft had paid to license other patents. In response, i4i

had its expert (Wagner) give a detailed explanation for how he arrived at the $98 royalty

2 An expert witness with “scientific, technical, or otherwise specialized knowledge,” may testify and form an opinion “if (1) the testimony is based upon sufficient facts or data, (2) the testimony is the product of reliable principles and methods; and (3) the witness has applied the principles and methods reliably to the facts of the case.” Fed. R. Evid. 702.

2009-1504

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