Opinion ID: 2780822
Heading Depth: 3
Heading Rank: 2

Heading: Jem’s deductions

Text: First, Plaintiffs claim the district court erred by reopening discovery to allow Jem to produce proof of its deductible costs after trial, when Jem had only produced an unsupported summary document of its costs prior to trial. While Plaintiffs might consider this unfair, the district court’s decision was within its broad discretion. Plaintiffs cite no legal support showing otherwise. Second, Plaintiffs claim that Jem introduced insufficient supporting documentation to sustain its burden to prove that it paid salespersons $130,271.47. The district court did not abuse its discretion by relying on the report by Jem’s controller, Linda Lyth. Lyth testified in her declaration as an expert, and in general, experts need not disclose all underlying documents on which they rely. See Fed. R. Evid. 705.7 For the same reason, we reject Plaintiffs’ objection to Jem’s Gross Margin Invoice Summary Register. Third, Plaintiffs challenge the $72,989.64 deduction for discounts given to retailers. The district court considered Jem’s agreements with retailers showing their respective discounts. The dollar value of retailer discounts was reached by multiplying these rates by the total sales. Contrary to Plaintiffs’ argument, Jem did not need to submit proof that the retailers used their discounts, when there was no evidence that they did not do so. It would be reasonable to infer that the retailers took advantage of wholesale markdowns when they 7 While Plaintiffs claim Lyth “admitted she had no personal knowledge of [the commission] payments,” the record evidence they cite contains no such admission. FIFTY-SIX HOPE ROAD MUSIC V. A.V.E.L.A. 31 contracted for them, a matter within the district court’s discretion. See Playboy Enters., Inc., 692 F.2d at 1275. Finally, Plaintiffs argue that Jem did not prove that the $0.80-per-garment processing cost Jem paid its affiliate (Jem Equipment) was competitive. However, the law does not require that an infringer prove its expenses were competitive in addition to proving it actually incurred them.