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Monday, February 13, 2006 3:12:45 AM
DAMAGES IN PATENT SUITS
SEE STATUTE BELOW, AND THIS EXCERPT FROM
http://www.bromsun.com/media/When_Lost_Profits_Are_Lost.pdf
NOTE 6 ON PAGE 3:
Note that patent licenses negotiated in settlement of pending or threatened litigation have been found to be of little or no weight in determining a reasonable royalty, or are inadmissible under Rule 403 or Rule 408 of the Federal Rules of Evidence. Deere & Co. v. Int'l Harvester Co., 710 F.2d 1551 (Fed. Cir. 1983) (licenses admissible but of little probative value); Hanson v. Alpine Valley Ski Area, Inc., 718 F.2d 1075, 1078, 1082 (Fed. Cir. 1983) (even if exclusion of license offers was error, it was harmless because offers were of little relevance); Pharmastem Therapeutics, Inc. v. Viacell Inc., 2003 WL 22387038 (D. Del. October 7, 2003) (license agreements negotiated when “litigation was threatened or at least probable” inadmissible under Rule 408); Donnelly Corp. v. Gentex Corp., 918 F. Supp. 1126 (W.D. Mich. 1996) (licenses inadmissible under Rule 403 because prejudicial effect outweighed slight probative value); Century Wrecker Corp. v. E.R. Buske Manuf. Co., 898 F. Supp. 1334 (N.D. Iowa 1995) (finding licenses
admissible only to the extent relied upon by plaintiff's expert).
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35 U.S.C. 284 Damages. - Patent Laws
35 U.S.C. 284 Damages.
Upon finding for the claimant the court shall award the claimant damages adequate to compensate for the infringement but in no event less that a reasonable royalty for the use made of the invention by the infringer, together with interest and costs as fixed by the court.
When the damages are not found by a jury, the court shall assess them. In either event the court may increase the damages up to three times the amount found or assessed. Increased damages under this paragraph shall not apply to provisional rights under section 154(d) of this title.
The court may receive expert testimony as an aid to the determination of damages or of what royalty would be reasonable under the circumstances.
(Amended Nov. 29, 1999, Public Law 106-113, sec. 1000(a)(9), 113 Stat. 1501A-566 (S. 1948 sec. 4507(9)).)
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