Patent infringement damages – Federal Circuit gives thumbs down to “25% rule”
Abstract: In a recent case involving infringement of an antipiracy software registration system, the Federal Circuit affirmed the district court’s grant of a new damages trial because the award was “fundamentally tainted by the use of a legally inadequate methodology.” This article explains the court’s repudiation of the oft-used “25% rule of thumb.” Citation: Uniloc USA Inc. v. Microsoft Corporation, 632 F.3d 1292 (Fed. Cir. 2011). Georgia-Pacific Corp. v. United States Plywood Corp., 318 F. Supp. 1116 (S.D.N.Y. 1970), modified and aff’d, 446 F.2d 295 (2d Cir. 1971).