Chapter 1: Reasonable Royalties

Forthcoming, Patent Remedies and Complex Products: Toward a Global Consensus, Ch. 1 (Brad Biddle, Jorge L. Contreras, Brian J. Love, and Norman V. Siebrasse, eds., Cambridge University Press)

SMU Dedman School of Law Legal Studies Research Paper No. 405

102 Pages Posted: 10 Oct 2018 Last revised: 13 Nov 2018

See all articles by Thomas F. Cotter

Thomas F. Cotter

University of Minnesota Law School

John M. Golden

University of Texas at Austin - School of Law

Oskar Liivak

Cornell University - Law School

Brian J. Love

Santa Clara University School of Law

Norman Siebrasse

University of New Brunswick - Fredericton - Faculty of Law

Masabumi Suzuki

Graduate School, Nagoya University

David O. Taylor

Southern Methodist University - Dedman School of Law

Date Written: September 13, 2018

Abstract

This chapter:

(1) describes the current state of, and normative basis for, the law of reasonable royalties among the leading jurisdictions for patent infringement litigation, as well as the principal arguments for and against various practices relating to the calculation of reasonable royalties; and

(2) for each of the major issues discussed, provides one or more recommendations.

The chapter’s principal recommendation is that, when applying a “bottom-up” approach to estimating reasonable royalties, courts should replace the Georgia-Pacific factors (and analogous factors used outside the United States) with a smaller list of considerations, specifically:

(1) calculating the incremental value of the invention and dividing it appropriately between the parties;

(2) assessing market evidence, such as comparable licenses; and (3) where feasible and cost-justified, using each of these first two considerations as a “check” on the accuracy of the other.

Suggested Citation

Cotter, Thomas F. and Golden, John M. and Liivak, Oskar and Love, Brian J. and Siebrasse, Norman and Suzuki, Masabumi and Taylor, David O., Chapter 1: Reasonable Royalties (September 13, 2018). Forthcoming, Patent Remedies and Complex Products: Toward a Global Consensus, Ch. 1 (Brad Biddle, Jorge L. Contreras, Brian J. Love, and Norman V. Siebrasse, eds., Cambridge University Press) ; SMU Dedman School of Law Legal Studies Research Paper No. 405. Available at SSRN: https://ssrn.com/abstract=3249096

Thomas F. Cotter (Contact Author)

University of Minnesota Law School ( email )

229 19th Avenue South
Minneapolis, MN 55455
United States
612-624-7527 (Phone)

John M. Golden

University of Texas at Austin - School of Law ( email )

School of Law
727 East Dean Keeton Street
Austin, TX 78705
United States
(512) 232-1469 (Phone)

Oskar Liivak

Cornell University - Law School ( email )

Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States
607-255-1715 (Phone)

Brian J. Love

Santa Clara University School of Law ( email )

500 El Camino Real
Santa Clara, CA 95053
United States

Norman Siebrasse

University of New Brunswick - Fredericton - Faculty of Law ( email )

P.O. Box 4400
Fredericton, New Brunswick E3B 5A3
Canada
506-453-4725 (Phone)
506-453-4548 (Fax)

Masabumi Suzuki

Graduate School, Nagoya University ( email )

Furo-cho, Chikusa-ku
Nagoya-City, 4648601
Japan
+81-52-789-4576 (Phone)
+81-52-789-4576 (Fax)

David O. Taylor

Southern Methodist University - Dedman School of Law ( email )

P.O. Box 750116
Dallas, TX 75275
United States

HOME PAGE: http://www.law.smu.edu/Faculty/Full-Time-Faculty/Taylor.aspx

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