Tuesday, May 7, 2019

IP Owners Association Paper on Apportionment in Reasonable Royalty Calculations

The Intellectual Property Owners Association Damages and Injunctions Committee has completed a paper titled Apportionment in Determining Reasonable Royalty Damages:  Legal Principles, Practical Considerations and Countervailing Viewpoints.  From the introduction:
The Damages and Injunctions Committee of the Intellectual Property Owners Association (IPO) is pleased to present this white paper on apportionment. Our goal in presenting this paper is twofold. First, we have sought to provide a neutral exposition of background law regarding principles of reasonable royalty damages in patent infringement lawsuits, focusing on the legal, economic, and policy-based requirements to apportion damages to the footprint of the invention. Second, recognizing that IPO’s membership comes to the subject from different perspectives, we have also sought to present point/counterpoint discussions to bring out arguments on both sides of common disputes relating to apportionment. We hope IPO’s membership finds this to be a helpful resource and a thought-provoking starting point for further analyses and discussion.
I think the paper does a nice job setting out the law, as well as the pros and cons of using the SSPPU as the royalty base.  Thanks to Alan Cox for sending this my way.

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