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Civil Litigation,
Intellectual Property,
Appellate Practice

Jun. 27, 2017

Federal Circuit clarifies long-standing lost profits question

The robustness of lost profits has been undermined in recent years by an unsettled issue - whether patentees must apportion lost profits damages (just like reasonable royalty) when the patent is directed to a feature of a larger accused product.

Chris Marchese

Principal
Fish & Richardson PC

633 West Fifth Street, 26th Floor
Los Angeles , CA 90071

Phone: (858) 678-5070

Email: marchese@fr.com

George Washington Univ Law School

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Liz Ranks

Associate
Fish & Richardson PC

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When it comes to patent damages, patent owners can pursue lost profits or a reasonable royalty. A reasonable royalty is the statutory floor under 35 U.S.C. Section 284, and it is generally accepted that lost profits will yield more in damages than reasonable royalty. Not surprising, then, patentees usually seek lost profits when the patentee and accused infringer compete. However, the robustness of lost profits has been undermined in recent years by an unsettled issue...

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