The Federal Circuit ruled in Roland Corp. v. inMusic Brands, stating that Roland could not claim lost profits from its wholly owned subsidiary, Roland U.S., because it failed to demonstrate that those profits flowed "inexorably" to it. The jury had awarded Roland $2.7 million in lost profits and $1.9 million in reasonable royalties, but the appellate court vacated the award and demanded a new trial. The ruling reiterates the need for clear proof of the financial relationship between parent and subsidiary in patent infringement cases.
In the case of Roland Corp. v. inMusic Brands, the Federal Circuit reaffirmed its long-held view that a patentee cannot claim a subsidiary's lost profits as its own.
The Federal Circuit vacated the lost profits award of $2.7 million in Roland’s favor due to insufficient evidence showing that the subsidiary’s profits flowed inexorably to the parent.
Collection
[
|
...
]