Jury trial testimony on reasonable royalty for smart speaker technology

CRA’s expert provided expert testimony in a jury trial involving the alleged infringement of a patent related to microphone arrays used in voice-activated smart speakers which perform a variety of functions enabled by a cloud-based artificial intelligence system. The team of CRA consultants identified several material flaws with the plaintiff’s running royalty rate analysis based upon an apportionment of projected downstream ecommerce profits. CRA’s consultants analyzed the incremental benefit of the patented invention, the licensing practices of the parties, and the Georgia-Pacific factors to determine a reasonable royalty. CRA’s expert concluded, and the jury agreed, that the plaintiff’s running royalty claim was grossly overstated and that a much smaller, lump sum royalty would be appropriate.