Convolve, Inc. v. Dell, Inc., Western Digital Corporation, Hitachi Global Storage Technologies, Inc., and Hitachi, Ltd.

Analysis Group was retained by Kasowitz, Benson, Torres & Friedman LLP and Findlay Craft, LLP in a patent infringement lawsuit on behalf of our client, Hitachi, in the Eastern District of Texas (Marshall Division). In the case, Convolve, Inc. v. Dell, Inc., Western Digital Corporation, Hitachi Global Storage Technologies, Inc., and Hitachi, Ltd., Hitachi was sued by Convolve for alleged infringement of a patent covering a user interface for optimizing the seek noise associated with hard disk drives. Convolve had claimed $35.8 million in damages from Hitachi, as well as significant claimed damages from co-defendants Dell and Western Digital.

The Analysis Group case team, led by Senior Advisor Keith R. Ugone and Vice President Minh Doan, conducted an independent evaluation of Convolve's claimed damages and prepared a rebuttal report. Dr. Ugone testified at deposition and trial that, if infringement were found, claimed damages should be a lump-sum payment of no more than $2.4 million. The factors Dr. Ugone considered included Hitachi's innovations and contributions relating to hard disk drives, Hitachi's profit per disk drive, the limited consumer demand for the accused feature, and Convolve's real-world licensing offers for its technologies, including the patent-in-suit.

At the conclusion of the trial, the jury found the patent-in-suit to be valid and infringed. However, the damages award against Hitachi was only $1.4 million, rather than the $35.8 million requested. The damages awards against Dell and Western Digital were similarly favorable, at $1.4 million and $2.4 million, respectively. Dell and Western Digital had retained their own damages experts who also testified at trial.