Determining Royalty Damages in Patent Litigation

The practice note “Determining Royalty Damages in Patent Litigation” provides guidance on calculating royalty damages in patent cases, focusing on the application of the Georgia-Pacific factors, comparability analysis, and the determination of the royalty base. Under 35 U.S.C. § 284, courts must award damages adequate to compensate for infringement, often calculated as a reasonable royalty. This involves analyzing historical licensing agreements and navigating complex fact patterns. The note emphasizes the importance of tailoring royalty analyses to specific circumstances, considering factors like the patented technology’s contribution, market demand, and industry standards. It discusses the role of technical and economic experts in apportioning the value of patented features and ensuring accurate royalty calculations. The note also highlights challenges such as over-reliance on settlement-driven licenses, inadequate apportionment, and royalty stacking in SEP licensing. Practitioners are advised to collaborate with experts, adjust for geographic and economic contexts, and employ portfolio valuation methods. Ultimately, successful royalty determinations require careful preparation, expert collaboration, and an understanding of evolving legal and technological trends to achieve favorable outcomes in patent litigation.

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