Over the past five years, the Federal Circuit has significantly reshaped the law regarding calculation of reasonable royalty damages in patent cases.
In a series of major decisions, the court has restricted patent owners’ ability to collect large damage awards based on total sales of an infringing product that contains multiple components—like computers or other complex electronic devices—where the patented features are not the primary driver of customer demand. The court has overturned numerous damages awards where the jury was improperly allowed to base damages on the “entire market value” of an infringing product.
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