Page 187 - CFF

Reasonable royalty

• In patent cases, statute says a patent holder is entitled to no less than a
reasonable royalty (even if lost profits cannot be proven) in the event

liability is established.

• Reasonable royalty also is an applicable measure of damages in other

intellectual property matters.

• Methods for establishing reasonable royalty

– Hypothetical negotiation — willing licensor or willing licensee

– Georgia-Pacific Corp. v. United States Plywood Corp. set out 15 factors to consider in the
hypothetical negotiation.

– Established royalty

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