Damages may be based on the entire product's value only where the patented feature is the basis for customer demand. Otherwise apportionment to the smallest salable patent-practicing unit is required.
The rule is narrowly applied.
Alternative Names:
EMVR|Entire Market Value
Why it Matters?
The demand-driver requirement is demanding and rarely satisfied in multi-component products, which makes entire market value theories a productive Daubert target since experts frequently apply the whole product base without establishing that the patented feature drove purchasing decisions. Even the smallest salable unit may require further apportionment where it contains multiple features, which the Federal Circuit has emphasized.
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Frequently asked questions
Why is the rule a productive challenge target?
Does the smallest salable unit end the analysis?
