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Owners of intellectual property frequently enter into licensing contracts with other parties and there are often disagreements about whether one or the other party has behaved in accordance with contract terms. Brattle economists have been asked to evaluate the various sources of damage arising from those alleged breaches, including lost profits, price erosion, reputation or brand impairment, and unjust enrichment.


Below is a list of representative engagements for our Contract Disputes practice.

Damages related to the value attributed to research
Our client, a major defense contracting firm, was sued by an engineer with whom it had contracted to develop a low temperature cathode ray technology. The engineer alleged that he had not been appropriately compensated for his contribution to the final product as required in his contract. Brattle experts were able to limit the amount of damages in this case by identifying the incremental value attributable to his research on the final product. This was accomplished by statistical analysis of the product prices with and without the feature at issue. A settlement was reached on favorable terms to the defense contractor.
Damages related to termination of a co-marketing agreement
For a major pharmaceutical company, The Brattle Group provided expert testimony before an arbitration panel on the damages that the company suffered as a result of the termination of a co-marketing agreement for a prescription hormonal therapy. Our client’s co-marketing partner terminated the agreement just as the product reached a breakeven point, and well before the agreement was due to expire. Our team quantified the profits that the pharmaceutical company would have earned had the agreement run its expected course, as well as the profits the company could have expected to earn on its existing portfolio of products had it never entered into the agreement. In response to Brattle’s testimony, the arbitration panel awarded the pharmaceutical company approximately $60 million in damages.
Economic interpretation of contractual provisions

For a major pharmaceutical company that had paid the co-developer of its blockbuster cholesterol drug a royalty based on net sales, Brattle’s expert provided testimony that: (i) described the economic justification for royalties based on net sales and (ii) explained why it was economically appropriate to take a broad view of the deductions from gross sales that were used to arrive at the net sales figure. This case settled on favorable terms for our client.

Contract dispute between a software provider and management consulting firm
In a contract dispute between a software provider and a major management consulting firm, we provided for the defendant an economic analysis and testimony on the functions covered by the contract, the software, and the consulting firm. This testimony narrowed the range of dispute and formed the basis for a damages model that valued the limited harm claimed by the claimant. The case settled on terms favorable for our client.
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