Recent Rulings On The Entire Market Value Rule And Impacts On Patent Litigation And Valuation

Eric Phillips and David Boag

Eric Phillips

VLF Consulting, Inc.

David Boag

Amster Rothstein &, Ebenstein LLP

The Federal Circuit’s 2009 decision in Cornell University v. Hewlett-Packard Co., 609 F. Supp. 2d 279 (N.D.N.Y. 2009) ushered in substantial changes to the computation of reasonable royalty damages in intellectual property litigation. Following Cornell and several other cases, the courts increasingly focus on whether or not the patented feature forms the basis of customer demand for a product before allowing the entire product to be used as the royalty base.

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