The Challenge: Proving the Value of an Intangible Asset
In patent litigation, a victory can hinge on one question: What is the technology actually worth? Our client's case hinged on proving the precise value of a patented software feature embedded in millions of smartphones and tablets. Legal arguments and expert opinion weren't enough; they needed irrefutable, scientific evidence that could withstand intense cross-examination and persuade a jury.
They needed to answer:
- How do you put a precise dollar value on an intangible software feature?
- How can you isolate its value from the hundreds of other features and the power of a global brand?
- Crucially, how do you present this value as a simple, defensible number that a jury can understand?
The Latenta Approach: A Virtual Marketplace to Reveal True Value
To provide unattackable evidence, we went beyond traditional surveys. We designed a sophisticated choice-making simulation that mimicked the real-world trade-offs consumers make, revealing the subconscious value they place on the patented technology.
- Realistic Simulation: We built three distinct virtual marketplaces for budget smartphones, premium smartphones, and tablets. We then guided hundreds of qualified, in-market Samsung device owners through a series of purchasing decisions, forcing them to trade off features like RAM, screen size, and price against the presence of the patented technology.
- Decoding Subconscious Priorities: As consumers made thousands of choices, our Hierarchical Bayes model decoded the precise "partworth" utility each person assigned to every feature. We didn't ask what they thought the patent was worth; we measured how their behaviour changed when it was offered.
- Aggressive Data Cleansing: To ensure the model was bulletproof, we implemented a rigorous filtering protocol, removing any respondent who showed signs of inattention, irrationality, or low price sensitivity. This conservative approach ensured our final price premium was both robust and defensible.
Actionable Insights Delivered: The Anatomy of a Price Premium
Our analysis delivered a precise, data-driven valuation that formed the bedrock of the damages claim.
- Insight #1: The Feature Was a Decisive Driver of Choice. Before calculating a dollar value, we demonstrated that the patent had a significant influence on consumer preference. Across all device types, products featuring the patented technology were chosen more than 10% more often—and up to 20% more frequently for tablets—a statistically significant result.
- Insight #2: Pinpointing the Precise Price Premium. Our simulations quantified the exact price difference at which consumers were split evenly between a device with the patent and a cheaper one without it. The result was a clear, conservative price premium: $21 for budget smartphones, $73 for premium smartphones, and $120 for tablets.
- Insight #3: Building an Irrefutable Case. By pre-testing the survey with in-depth interviews and using a design proven in other major patent cases, we built a methodology designed for legal scrutiny. The rigorous data cleansing and conservative modelling choices meant the final numbers were not just an estimate, but a defensible calculation.
The Strategic Impact: A Blueprint for a Damages Claim
Latenta replaced legal ambiguity with statistical certainty, transforming an abstract patent into a tangible asset. Our client was able to:
- Arm Counsel with Unassailable Evidence: They entered the court with a simple, powerful number backed by a rigorous, transparent methodology.
- Build a Defensible Damages Model: The price premiums provided a precise, per-unit valuation that served as a key input for their expert's reasonable royalty analysis.
- Translate Complexity for a Jury: We distilled a complex valuation into an easy-to-understand concept: what real customers were willing to pay for the feature.
- Quantify the Infringement: Our work provided the critical evidence necessary to build a multi-million-dollar damages claim on a solid foundation of data.
Quantify Your Intangible Assets
Whether you need to prove value in a courtroom, a boardroom, or a negotiation, you need more than an opinion—you need proof. Our IP Asset Valuation & Legal Damages Quantification service provides the rigorous, data-driven evidence to turn abstract value into a quantifiable, defensible number.
