Patent Purchase Price is Useful in Damages Analysis


In their article for Law360, “Patent Purchase Price is Useful in Damages Analysis," Edgeworth partners Dr. Gregory Leonard and Stephen Rusek discuss the importance of evaluating transaction prices of the intellectual property at issue when calculating reasonable royalty damages in a patent infringement case, as the price is an indicator of the royalties that were expected at the time of the transaction.

In particular, the authors note that “Substantial deviations between the expected royalties implied by the patent purchase price and the damages the patent owner later seeks in patent litigation […] should raise serious questions about the validity of the patent owner’s damages claim.”


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