## Notice and damages analysis

### 1. Constructive notice via marking

- **January 1 – June 30, 2022:** only **60%** of units were marked.  
  Because 60% < 95%, NovaTag was **not** in substantial compliance.

- **Starting July 1, 2022:** **97%** of units were marked.  
  Because 97% ≥ 95%, NovaTag achieved substantial compliance on that date.

**First constructive-notice date: July 1, 2022.**

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### 2. Actual notice

- **October 15, 2022 email:** No actual notice.  
  It did not identify a patent, did not charge infringement, and was only a licensing invitation/similar-technology statement.

- **February 1, 2023 letter:** Yes, this was actual notice.  
  It identified the patent, identified Model K, mapped claims, and charged infringement. However, because constructive notice already began **July 1, 2022**, the February 1 letter does **not** set the damages start date.

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### 3. Six-year filing lookback

NovaTag filed suit on **June 1, 2026**. The six-year cut-off is **June 1, 2020**.

All DeltaMark sales occurred between **March 2022 and December 2025**, which is within the six-year lookback. Therefore, the filing lookback eliminates nothing beyond the notice-based limitation.

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### 4. First recoverable damages date

Because constructive notice began on **July 1, 2022**, and actual notice came later, the first recoverable damages date is:

**July 1, 2022**

Sales from **March through June 2022** are unrecoverable for lack of constructive or actual notice.

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### 5. Damages calculation

- Monthly infringing units: **2,000**
- Royalty per unit: **$18**
- Monthly royalty:  
  **2,000 × $18 = $36,000/month**

Recoverable period: **July 2022 through December 2025**

| Period | Months | Units | Damages |
|---|---:|---:|---:|
| July–Dec 2022 | 6 | 12,000 | $216,000 |
| Jan–Dec 2023 | 12 | 24,000 | $432,000 |
| Jan–Dec 2024 | 12 | 24,000 | $432,000 |
| Jan–Dec 2025 | 12 | 24,000 | $432,000 |
| **Total** | **42** | **84,000** | **$1,512,000** |

**Total royalty damages: $1,512,000**

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### 6. If February 1, 2023 were incorrectly used as the start date

From **February 2023 through December 2025**:

- 2023: Feb–Dec = **11 months**
- 2024: **12 months**
- 2025: **12 months**

Total = **35 months**

Damages:

**35 × 2,000 × $18 = $1,260,000**

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### 7. Value lost from incorrect Feb 1 start and unrecoverable March–June 2022

- Correct damages: **$1,512,000**
- Incorrect Feb 1 start damages: **$1,260,000**
- Lost by using Feb 1 instead of July 1:  
  **$1,512,000 − $1,260,000 = $252,000**

That $252,000 represents the **7 months from July 2022 through January 2023**.

- Unrecoverable **March–June 2022** period:  
  **4 months × $36,000 = $144,000**

So:

- Value lost from incorrect Feb 1 start: **$252,000**
- Unrecoverable March–June 2022 period: **$144,000**