More On

IP: A reasonable royalty for patent infringement

The reasonable royalty becomes more “reasonable.”

Responding to increasingly large damages awards based on expert advice grounded more in speculation than fact, the Federal Circuit finally rejected the so-called “25 percent rule,” a rule of thumb used in calculating a reasonable royalty.

The 25 percent rule allowed an expert to opine that the accused infringer would pay a royalty rate equivalent to 25 percent of its profit on the product practicing the patent at issue.


author image

Eric Lobenfeld

Eric Lobenfeld is the co-head of the U.S. Intellectual Property Practice of Hogan Lovells. He has more than 35 years of experience litigating cases involving...

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.