royalties

(redirected from Reasonable royalty)

Royalty

A fee that one receives in exchange for allowing another party to use and profit from one's property. For example, a publisher who prints and sells a book must compensate the author for use of his/her intellectual property. Usually a royalty is a percentage of the revenue or profit that the other party (in this example, the publisher) makes.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

royalties

payments made for the use of an INTELLECTUAL PROPERTY RIGHT (copyrights, patents etc.) or physical property rights (mineral extraction rights etc.).
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
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 defendants have collected a fortune using Potter's technology," Banys added, "and we are asking the court for at least a reasonable royalty based on their unauthorized use."
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 ex ante;
(2) Courts measure a patentee's loss as lost profits attributable to the infringement or as a reasonable royalty during the infringement period.