The measure constructs a hypothetical negotiation between a willing licensor and licensee at the time infringement began. The Georgia-Pacific factors guide the analysis, and apportionment to the patented feature is required.
It is the statutory floor for damages.
Alternative Names:
Royalty Damages|Reasonable Royalty Damages
Why it Matters?
Apportionment to the patented feature is the central defense, since damages must reflect the value attributable to the claimed invention rather than the entire product, and the Federal Circuit has repeatedly vacated awards resting on unapportioned revenue. Comparable licenses are the most reliable evidence, and challenging their technical and economic comparability is where most royalty disputes are litigated.
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Frequently asked questions
What is the central defense?
What evidence is most reliable?
