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[test] Lost Profit Damages: What They Are and How They Impact High-Stakes Patent Litigation

When a client requests a measurement of damages for a high-stakes patent litigation case, they typically want to know how much profit has been lost. Lost profit damages are profits that would have been made to a patent holder if it were not for an infringement and can end up being costly.

In patent litigation, damages for lost profits compensate the patent owner for any money that they would have made if not for the infringement. Damages for lost profits can sometimes be costly when a patent holder is being sued for patent infringement. Despite this, proving patent infringement and lost profits is possible in order to get awarded lost profit damages.

According to Panduit Corp. v. Stahlin Bros. Fiber Works, Inc., there are several factors that must be considered when a litigation team evaluates lost profit damages. They include:

  • Demand for the patented product
  • The absence of acceptable non-infringing alternatives
  • The manufacturing and marketing capability to exploit the patented product’s demand
  • The amount in profit that would have been made if it were not for the alleged infringement

>> Download Now: High-Stakes Patent Litigation Complete Fact Sheet

Demand for the Patented Product

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The Absence of Acceptable Non-Infringing Alternatives

Bacon ipsum dolor amet consequat salami hamburger minim, qui spare ribs excepteur chuck pork belly. Dolore strip steak pig, culpa velit anim filet mignon frankfurter bresaola cupidatat. Ribeye pancetta dolore labore venison veniam lorem sunt duis flank t-bone.

The Manufacturing and Marketing Capability to Exploit the Patented Product’s Demand

Bacon ipsum dolor amet consequat salami hamburger minim, qui spare ribs excepteur chuck pork belly. Dolore strip steak pig, culpa velit anim filet mignon frankfurter bresaola cupidatat. Ribeye pancetta dolore labore venison veniam lorem sunt duis flank t-bone.

The Amount in Profit That Would Have Been Made

Bacon ipsum dolor amet consequat salami hamburger minim, qui spare ribs excepteur chuck pork belly. Dolore strip steak pig, culpa velit anim filet mignon frankfurter bresaola cupidatat. Ribeye pancetta dolore labore venison veniam lorem sunt duis flank t-bone.

The Panduit Factors

While the Panduit factors may provide guidance when evaluating lost profit damages, there are also economic methods that can provide complex, analytical solutions, which include an in-depth evaluation of:

  • Available products in the marketplace
  • Competition
  • Factors affecting demand
  • Pricing dynamics

An economic method of analysis also includes an in-depth evaluation of customer purchasing and substitution patterns across products.

Intensity’s Lost Profit Damages Expertise

Intensity’s lost profit damages extend beyond life sciences to various industries including aerospace, electronics, and entertainment. In each case, the team’s combined knowledge of advanced quantitative and qualitative economic factors provides a foundation for excellence when analyzing unique marketplace and related product competitiveness.

Contact us today to learn more.