Friday 21 January 2022

Over $100 million Patent Damages Decision

Back in October 21, 2021, the Court of Federal Claims decided to award over $100 million dollars concerning patent infringement against the United States Transportation Security Adminsitration (TSA) in SecurityPoint Holdings v. United States.  Independent claim 1 of the patent

discloses a method comprising: a. positioning a first tray cart containing trays at the proximate end of a scanning device through which objects may be passed, wherein said scanning device comprises a proximate end and a distal end, b. removing a tray from said first tray cart, c. passing said tray through said scanning device from said proximate end through to said distal end, d. providing a second tray cart at said distal end of said scanning device, e. receiving said tray passed through said scanning device in said second tray cart, and f. moving said second tray cart to said proximate end of said scanning device so that said trays in said second cart be passed through said scanning device at said proximate end. JX 1 col. 11 ls. 58-59, col. 12 ls. 1-14.

The court summarized its damages calculation as follows:

If we were to assess the royalty as of the date of this opinion, it would come to $103,685,510, derived as follows: 1) a royalty base of 7,660,935,659 passengers at Cat X and I airports from January 1, 2008 to April 30, 2020; 2) less 2,374,890,054 (31%) to account for TSA’s implied license; 3) less 101,770,092 (ASL passenger throughput); and 4) applying the per passenger royalty of two cents per passenger:

1)      Category X and I Passenger Throughput

Passenger Throughput 7,660,935,659

2) Implied License Deduction

31% Implied License Deduction

31% Passenger Throughput covered by Implied License 2,374,890,054

Remaining Passenger Throughput After Deduction for Implied License Remaining PAX (after 31% deduct) 5,286,045,605

3) ASL Passengers Passenger throughput related to ASL screening lanes that do not practice the patented methods and excludes overlapping passengers already deducted from the implied license

101,770,092 Royalty Base Calculated as Passenger Throughput Reduced by: 1) Implied License; and 2) ASL Throughput 5,184,275,513

4) Royalty Rate

Royalty Rate $0.02

Royalty Rate multiplied by the Royalty Base

Total Damages $103,685,510

This calculation, however, is based on a passenger throughput figure as of April 30, 2020. Plaintiff is correct that this number should be updated through the date of judgment, including appropriate reductions for implied licenses and ASL lanes. The same is true with respect to the application of interest, set out below. Accordingly, we leave to the parties the correct total judgment.

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