Economic Damages Valuation Services

Cendrowski Corporate Advisors was engaged by an attorney and their client to prepare a formal damages calculation and report and testify in United States District Court with a calculation of damages rebutting the opposing expert’s analysis.

In this case, competitors in a retail segment accused each other of copyright infringement on similar designs sold by both companies. Our client alleged that the opposing party infringed on their copyrights for numerous products, profiting from those products. Our client claimed a right to damages due to these infringements.

We calculated damages attributable to lost profits and disgorgement with respect to the alleged infringement and lost profits with respect to a claim of tortious interference. We considered the market and industry conditions and both parties’ revenue and expenses in relation to the products, particularly the incremental, or variable, expenses and price per unit. Our analysis consisted of financial modeling coupled with our expertise in the retail markets and economic theory. We provided a comprehensive and well-reasoned damages report along with expert testimony.

The engagement was unique in that the retail segment was being disrupted through numerous avenues, including the switch from brick and mortar to online sales. Understanding market trends was a critical part of this analysis, not only for how customer shopping habits were evolving but also for the expenses that our client and the opposing party were incurring as a result. Understanding these expenses, how they affected the damages calculation, and how they affected the business models going forward was a critical component of the damages calculation and rebuttal testimony.