in which 'profits', not a reasonable royalty
, was sought.
of America for a one-time payment to VirnetX and an ongoing reasonable royalty
on future sales, with respect to certain current and future IP telephony products supporting encrypted communications.
The government estimated this was a fair and reasonable royalty
in this phase of du's life.
Should the parties fail to come to an agreement, the district court could step in to assess a reasonable royalty
in light of the ongoing infringement.
Section 283 provides that upon a finding of infringement, a court "may grant injunctions in accordance with the principles of equity." (2) Section 284 requires a court to award damages "adequate to compensate for the infringement, but in no event less than a reasonable royalty
." (3) The traditional understanding of these remedial provisions is that section 283 operates prospectively, while section 284 operates retrospectively.
Once infringement of a valid patent has been established, the Patent Act requires the patent owner to be paid "damages to adequately compensate for the infringement, but in no event less than a reasonable royalty
for the use made of the invention by the infringer." Courts have interpreted this law to provide two general types of recovery: (1) lost profits and (2) a reasonable royalty
Evidence relying on the 25 percent rule of thumb is thus inadmissible under Daubert and the Federal Rules of Evidence, because it fails to tie a reasonable royalty
base to the facts of the case at issue.
Among specific topics are determining patent infringement, lost profits, reasonable royalty
, opinions of counsel, contracting around liability, and case presentation.
Ove Granstrand took a slightly different view in his paper 'Fair and Reasonable Royalty
Rate Determination--When Is The 25 per cent Rule applicable?
themselves would have used to estimate a reasonable royalty
(2) Courts measure a patentee's loss as lost profits attributable to the infringement or as a reasonable royalty
during the infringement period.