Calculation Method and Development Trends towards Reasonable Royalty Damages for U.S. Patent Infringement

Calculation Method and Development Trends towards Reasonable Royalty Damages for U.S. Patent Infringement

 

Title
Calculation Method and Development Trends towards Reasonable Royalty Damages for U.S. Patent Infringement
Author
Ching-Yi Wu
Keywords
Reasonable Royalty, Apportionment, The Entire Market
Value Rule, Standard-essential Patents, Ongoing Royalties
Abstract
This article firstly elaborated legal regulations about infringement damage
compensation with American patents and then facilitated with qualitative analysis
of judgment content to give a brief induction of the cases about Lost Profit, Reasonable
Royalty, Comparable Licenses, Apportionment and Entire Market Value
Rule, and take this opportunity to specify the calculation way of reasonable royalty
used for American court. As judgment was entered under results for applicable law
about some case conditions and not comprehensive viewpoint for reasonable royalty,
and some judgments may have different explanation under the same legal
principle between two judgments, why did it result from? To answer this question,
we should firstly probe the initial intention for each legal principle, and then audit
the differences between each two case facts before it properly applied for each legal
principle. This article tried to classify and incorporate into different case types
for formulating conceptual framework for reasonable royalty, as well as raise calculation
mode for reasonable royalty.

For recent development trends towards reasonable royalty, namely the calculation
mode of royalty for standard-essential patents and ongoing royalties, this
Article also gave analysis and introductions. While calculating royalties for standard-essential
patents, it was not exactly the same as that of reasonable royalty,
especially whether patentee fulfills fair, reasonable and nondiscriminatory obligation
or whether it resulted patent holdup, royalty stacking and caused impairment
for competition, damage of consumer benefits, which has become the focus in the
American scholars and pragmatic industry in recent years, the United States District
Courts have diversified statuses about calculation of such royalty, and the Federal
Circuit gave the guiding principles at Ericsson v. D-Link case. In addition, in
regards to the issue of infringer still continues to infringe Ongoing Royalties after
jury verdict and affirmed infringement for patent rights, the Federal Circuit Court
did not explicitly indicate calculation method even through it expressed several
principles, this article analyzed the comments that gave by the judges at the Eastern
District of Texas about the case of Mondis Technology Ltd. v. Chimei InnoLux
Corp., as well as the different viewpoints made by scholars, so as to set up calculation
framework for ongoing royalty, and raised for critical advice.

Abstract Article

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