Patent infringement: Scrutinizing the “entire market value” rule
Abstract: Proving damages in patent cases is rarely straightforward, particularly when the infringing item is only a small feature of a larger product. The general rule is that royalties should be based on the “smallest salable patent-practicing unit.” But there’s an exception to this principle — the “entire market value” rule. This article examines one case in which the court decided whether the rule applied. A sidebar discusses four litigation settlement agreements used by the plaintiff’s expert to establish damages.