Entire market value rule again excluded

From the when-will-they-learn department, still another court (Schindler Elevator Corporation, et. al. v. Otis Elevator Company, 1-06-cv-05377 (NYSD June 23, 2011, Order) (McMahon, J.)) granted a motion to exclude a damages expert from using the entire market value rule to establish a reasonable royalty because the expert stated that the patent feature was a “substantial basis for demand” for the components purchased and installed at the seven locations offered at trial. Unfortunately for plaintiff (IPBlog readers will recall the Uniloc case), the test for applicability of the entire market rule is whether the patent component is the reason customers bought the component parts, thereby making it “the basis for customer demand.”