The Panduit factors require demand for the patented product, absence of acceptable non-infringing substitutes, capacity to meet demand, and the amount of profit that would have been made.
Reasonable royalty is the fallback.
Alternative Names:
Patent Lost Profits|Panduit Damages
Why it Matters?
Acceptable non-infringing alternatives defeat lost profits and channel damages to a reasonable royalty, which is usually a substantially smaller figure, and establishing that alternatives were available and acceptable to purchasers is accordingly the primary defense investment. Manufacturing and marketing capacity is a second element that smaller patentees frequently cannot establish for the full infringing volume.
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Frequently asked questions
What defeats lost profits?
Which element do smaller patentees struggle with?
