Reasonable Royalties

Cotter, Thomas F.; Golden, John M.; Liivak, Oskar; Love, Brian J.; Siebrasse, Norman; Suzuki, Masabumi; Taylor, David O.

Reasonable Royalties

in PATENT REMEDIES AND COMPLEX PRODUCTS: TOWARD A GLOBAL CONSENSUS, (Brad Biddle, Jorge L. Contreras, Brian J. Love, and Norman V. Siebrasse, eds., Cambridge University Press), https://doi.org/10.1017/9781108594981.002

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

Cornell Legal Studies Research Paper No. 18-49

102 Pages Posted: 10 Oct 2018 Last revised: 16 Jun 2023

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

Faculty of Law, Waseda 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: 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., Reasonable Royalties (September 13, 2018). in PATENT REMEDIES AND COMPLEX PRODUCTS: TOWARD A GLOBAL CONSENSUS, (Brad Biddle, Jorge L. Contreras, Brian J. Love, and Norman V. Siebrasse, eds., Cambridge University Press), https://doi.org/10.1017/9781108594981.002, SMU Dedman School of Law Legal Studies Research Paper No. 405, Cornell Legal Studies Research Paper No. 18-49, Available at SSRN: https://ssrn.com/abstract=3249096