Reasonable Royalty Damages: What Are We Proving And How?

Law360, New York ( July 15, 2014, 11:24 AM EDT) -- By statute, a patentee is entitled to no less than a reasonable royalty as damages for infringement. The object of the reasonable royalty damages portion of a patent infringement trial is to present a reliable method of determining that the ultimate royalty awarded is a fair, if not perfect, representation of the contribution the invention made to the revenue generated by the product in which it is embodied. The method most commonly used is a calculation first of the appropriate revenue base and then the application of a royalty rate to that base. (Other approaches include the analytical method and the rare "established royalty" analysis.)...

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