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[test] What Reasonable Royalties Can Get You in a High-Stakes Patent Litigation Case

In a high-stakes patent litigation case, reasonable royalties can be hard to come by if not for the best economic analysis. A reasonable royalty is the amount of money two parties in a case would have agreed on if a hypothetical negotiation was held before the determined date of infringement occurred.

As dictated in Georgia-Pacific Corp. v. United States Plywood Corp., there are 15 factors that guide what would be considered in the hypothetical negotiation, ultimately determining the “damages adequate to compensate for the infringement, but in no event less than a reasonable royalty.”

Additionally, reasonable royalties can be determined by using market, cost, and income approaches:

  • Using comparable licenses (the market approach)
  • Determining the cost of implementing a non-infringing technology (the cost approach)
  • Measuring the benefits derived from use of the patented technology (the income approach)

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

Using comparable licenses (the market approach)

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Determining the cost of implementing a non-infringing technology (the cost approach)

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.

Measuring the benefits derived from use of the patented technology (the income approach)

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.

Intensity’s Reasonable Royalties Expertise

With Intensity’s state-of-the-art tools and rigorous economic logic, our team is capable of conducting a reasonable royalty analysis across a market, cost, and income approach.

Contact us today to learn more.