Reasonable Royalty in Patent Damages: What You Need to Know in 2017
Section 284 of the US Patent Code mandates that a patentee is entitled to royalty damages for an infringement had there been an infringement suit or none. The minimum grant that the claimant can recover if there had been no suit is the royalty that it and the infringer have agreed upon. Furthermore, in an event where the patentee cannot prove any actual damages, he is still entitled of the said mandate given that the court has assessed the infringing sales. This class is called “reasonable royalty damages.”
However, some consider the terminology as confusing and misleading. Questions arise as to the “reasonability” of reasonable royalty. In addition, while the Federal Circuit has approved two approaches – the Hypothetical Negotiation and the Analytical Approach – it has stressed that there is no single way to determine reasonable royalty damages.
On a lighter note, however, possible approaches which were not explicitly approved by the Federal Circuit such as Rule of Thumb, Established Royalty for the Patent, Many Licenses in a Small Range of Rates, and Cost Savings have already been used in some cases.
In this LIVE Webcast, a panel of key thought leaders organized by The Knowledge Group will provide the audience with an in-depth discussion of the Reasonable Royalty in Patent Damages. Speakers will also help them understand the potential and the approved approaches in determining reasonable royalty damages in patent infringements.
Some of the major topics that will be covered in this course are:
- Overview of Reasonable Royalty
- U.S. And Canadian Law Compared and Contrasted
- Hypothetical Negotiation
- Apportionment Analysis
- FRAND Compliance
Shelly D. Irvine, Senior Managing Director
- Theory and background on apportionment
- Apportionment techniques used by damages experts
- What are the Courts staying about these techniques
- Strategies for success/avoiding Daubert
Matthew R. Lynde, Senior Vice President
- F/RAND Compliant Reasonable Royalties
- Comparison with regular reasonable royalties
- Methods and evidence for F/RAND royalties
- Cases and issues
Stephanie Demperio, Senior Consultant
NERA Economic Consulting
- Reasonable royalty overview
- Compare and contrast US and Canada
- Hypothetical negotiation framework – modeling and pitfalls
- Institutional features and their effects on royalty calculations: a pharma example
- Extraterritoriality issues: global basis reasonable royalty determination
Who Should Attend:
- IP Attorneys & Consultants
- Patent Attorneys
- Patent Litigators
- In-House Counsel
- IP Consultants and Experts
- Patent Owners
- Patent Licensing Attorneys
- Other Related/Interested Professionals
Dr. Demperio conducts economic research and analysis in the areas of antitrust, intellectual property economics, commercial damages, public health and policy, and business valuation. In intellectual property, Dr. Demperio has expertise in calculating lost profits and reasonable royalty damages in cases involving patent, copyright, trademark, and trade secret infringement. Her project experience spans a wide variety of industries including agricultural products, apparel, auto parts, chemicals, paper products, telecommunications, food products, and pharmaceuticals. She has supported clients in matters brought before courts and government authorities in the US, Canada, Australia, and the UK.
Dr. Demperio conducts economic research and analysis in the areas of antitrust, intellectual property economics, commercial damages, public health and …
Shelly Irvine is a senior managing director in the FTI Forensic and Litigation Consulting practice and is based in San Francisco. Ms. Irvine has 20 years of experience consulting with clients and counsel regarding intellectual property matters in a wide range of industries. Ms. Irvine is focused exclusively on clients who have intellectual property needs, both within litigation as well as clients who require intellectual asset management or valuation services. As it relates to litigation, Ms. Irvine has assessed and quantified patent, copyright and trademark infringement damages on many occasions. Her larger experience spans many industries including telecommunications, life sciences, semiconductor, satellite communications, computer software and hardware, retail and manufacturing.
Shelly Irvine is a senior managing director in the FTI Forensic and Litigation Consulting practice and is based in San …
Matthew R. Lynde has more than thirty-five years of experience as an applied economist in government, academia, and business. He has served as an expert witness in more than twenty trials or arbitrations in state, federal, and international venues. In Microsoft v. Motorola, Dr. Lynde calculated reasonable and nondiscriminatory (RAND) royalties in the first bench trail to set a RAND range for standard essential patents.
He has testified in several other significant cases involving the high-tech, medical, and life sciences industries. In addition to intellectual property, he works in antitrust and competition, securities, and breach of contract matters.
Dr. Lynde trained in electrical engineering at the University of California, Berkeley. Prior to joining Cornerstone Research, he was a professor at City University of New York and a partner at PricewaterhouseCoopers, heading up its Silicon Valley intellectual property practice.
Matthew R. Lynde has more than thirty-five years of experience as an applied economist in government, academia, and business. He …
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Method of Presentation:
Experience in patent law
NASBA Field of Study:
Business Law - Technical
NY Category of CLE Credit:
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About NERA Economic Consulting
NERA Economic Consulting (www.nera.com) is a global firm of experts dedicated to applying economic, finance, and quantitative principles to complex business and legal challenges. For over half a century, NERA's economists have been creating strategies, studies, reports, expert testimony, and policy recommendations for government authorities and the world's leading law firms and corporations. We bring academic rigor, objectivity, and real world industry experience to bear on issues arising from competition, regulation, public policy, strategy, finance, and litigation.
NERA's clients value our ability to apply and communicate state-of-the-art approaches clearly and convincingly, our commitment to deliver unbiased findings, and our reputation for quality and independence. Our clients rely on the integrity and skills of our unparalleled team of economists and other experts backed by the resources and reliability of one of the world's largest economic consultancies. With its main office in New York City, NERA serves clients from more than 25 offices across North America, Europe, and Asia Pacific.
About FTI Consulting
The Intellectual Property group at FTI Consulting consists of a prestigious, multi-disciplinary team of highly trained professionals distributed globally that can provide an unmatched breadth of in-depth consulting and expert witness assistance to corporations and their counsel across the entire intellectual property lifecycle. We work cohesively with counsel and clients to develop solid and defensible damages analyses and strategies. We offer our clients a unique insight into the litigation process from a damages perspective including early case assessment, discovery assistance, 30(b)(6) accounting and financial witness deposition support, settlement strategies, trial preparation and trial testimony. FTI Consulting has broad expertise relating to patent, trademark, trade secret, copyright and other forms of intellectual property issues such as:
- Dispute Resolution (including damage assessments and financial analyses)
- Technology and Intellectual Property Management services
- Royalty Compliance
- Intellectual Property and Brand Protection
- Brand Development and Market and Consumer Demand Analyses
About Cornerstone Research
Cornerstone Research provides economic and financial consulting and expert testimony in all phases of complex litigation and regulatory proceedings. The firm works with an extensive network of prominent faculty and industry practitioners to identify the best-qualified expert for each assignment. Cornerstone Research has earned a reputation for consistent high quality and effectiveness by delivering rigorous, state-of-the-art analysis for over twenty-five years. The firm has 600 staff and offices in Boston, Chicago, London, Los Angeles, New York, San Francisco, Silicon Valley, and Washington.