• On August 24, 2012, the U.S. Court of Appeals for the Federal Circuit largely denied Verizon’s appeal of the $140 million damages awarded by a Virginia district court to ActiveVideo Networks on claims that Verizon FiOS infringed certain ActiveVideo patents for on-demand video. Verizon complained that the trial court improperly excluded its damages expert but allowed ActiveVideo to use its contract with GemStar to prove its damages. The Federal Circuit held that the “Cablevision agreement postdated the hypothetical negotiation by four years and the district court thus had a legitimate reason to exclude it.” It also held that Verizon was too late to complain about ActiveVideo’s use of another contract: “The fact that the district court allowed ActiveVideo’s expert to rely on the Gemstar agreement, which postdated the hypothetical negotiation by two years, is irrelevant because Verizon never challenged its admissibility.” The Federal Circuit did agree with Verizon, however, that the trial court incorrectly ruled that Verizon had infringed one of the four ActiveVideo patents at issue, but found that reversing that error did not reduce Verizon’s liability: “because Verizon has not argued either before the district court or on appeal that a finding of noninfringement of the ’582 patent should result in a reduction of damages, we affirm the damages award against Verizon in full.” The district court’s injunction against Verizon was dissolved on the ground that ActiveVideo’s damages are quantifiable. Active Video Networks Inc. v. Verizon Commc’ns Inc., No. 2011-1538 (Fed. Cir.).