Jun 15
The Federal Circuit affirmed a $391 million damage award in Versata Software, Inc. v. SAPAmerica, Inc., No. 2012-1029, -1049 (Fed. Cir. May 1, 2013). In reviewing the damage portion of the ruling, one cannot help but wonder about the damages calculation strategy that the defendant employed. The Federal Circuit summarized the parties and the infringement …
Permanent link to this article: https://betweenthenumbers.net/2013/06/federal-circuit-leaves-large-damage-award-stand/
Jun 11
The AICPA has issued a new Financial Reporting Framework (“FFR”) for Small and Medium Sized Entities (“SMEs). These smaller enterprises are often not required to prepare financial statements in accordance with Generally Accepted Accounting Principles (“GAAP”). Yet all financial statements are presented in accordance with some financial reporting framework, however defined. This new FFR provides …
Permanent link to this article: https://betweenthenumbers.net/2013/06/aicpa-issues-financial-reporting-framework-for-small-and-medium-sized-entities/
Jun 08
The Federal Circuit in re: Douglas Dynamics, LLC v. Buyers Product Company (Fed. Cir. May 21, 2013) provides reminders of how reasonable royalty damages must be calculated, and then remanded the damages verdict for retrial. The Federal Circuit succinctly summarized the parties and their products as follows: “Douglas and Buyers both manufacture snowplow assemblies for …
Permanent link to this article: https://betweenthenumbers.net/2013/06/federal-circuit-reiterates-reasonable-royalty-principles/
Jun 05
ABC’s popular TV show, “Shark Tank,” shows negotiations between entrepreneurs and five Venture Capital (VC) investors (“the Sharks”). Before describing their company, business owners typically make a request in the following form: X thousands of dollars in exchange of Y percent ownership in the company. For example, in a recent episode, the two owners of …
Permanent link to this article: https://betweenthenumbers.net/2013/06/shark-tank-doesnt-get-venture-capital-valuation-right/
Jun 01
A recent report by the Federal Trade Commission (“FTC”) entitled “Consumer Fraud in the United States, 2011: The Third FTC Survey” provides some interesting statistics on the prevalence of fraud. The underlying consumer surveys revealed that during 2011 an estimated 10.8 % of U.S. adults (25.6 million people) were a victim of one or more of an estimated total …
Permanent link to this article: https://betweenthenumbers.net/2013/06/more-than-10-of-us-adults-were-victims-of-fraud-in-2011/
May 31
Even after the increased regulation associated with the Sarbanes-Oxley Act (SOX) in July 2002, the audit profession continues to deal with questions of whether they are truly independent from the companies who employ them and overall audit effectiveness. A recent report commissioned by the Center for Audit Quality (“CAQ”) specifically examines Securities and Exchange Commission …
Permanent link to this article: https://betweenthenumbers.net/2013/05/battling-auditor-enabled-fraud/
May 30
Considering taxes in a lost earnings calculation related to personal injury matters may materially alter the damages amount. In the well-known 1980 Supreme Court case, Norfolk & Western Railway Co. v. Liepelt, the Court ruled that courts should consider taxes and calculate lost earnings net of income taxes. The Court’s rationale was that the damage …
Permanent link to this article: https://betweenthenumbers.net/2013/05/consideration-of-taxes-in-a-lost-earnings-calculation/
Permanent link to this article: https://betweenthenumbers.net/2013/05/is-college-worth-it-taking-new-econometric-methods-seriously/
May 25
A recent study in The Journal of Financial Economics suggests that a compensation structure that relies on financial performance measures can be tied to incidences of fraud. Generally, the study concludes that individuals are more likely to engage in financial misstatements when the there is little downside and high upside. The implication is that this relationship can have …
Permanent link to this article: https://betweenthenumbers.net/2013/05/7613/
May 23
A recent ruling in a New Jersey federal court will no doubt serve as a warning for litigants who decline to employ the services of an expert to establish reasonable royalties. In the matter of Unicom Monitoring, LLC (“Plaintiff”)v. Cencom, Inc. et al (Civil Action No. 06-1166 (MLC)), U.S. District Judge Mary L. Cooper granted …
Permanent link to this article: https://betweenthenumbers.net/2013/05/no-expert-leads-to-no-damages/
May 28
Is College Worth It?— New Econometric Methods Provide Another Approach
May 28, 2013
In a previous post, Eric discussed a Brookings Institution policy brief that argued, among other things, that college education is a poor investment for some students. This assertion is based in large part on the negative return on investment (ROI) reported by Payscale.com for certain non-selective colleges. The problem with this sort of analysis, however, …
Continue reading