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Reasonable Royalties : Strategies and Limits for Proving. Charles Walker Fulbright & Jaworski L.L.P. Houston. Remedies. Lost Profits Injunction Reasonable Royalty . Reasonable Royalties. $ $ $ $. No , that’s crazy ------. Sketchy , but OK ------. Royalties. $. Opinions. 3.
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Reasonable Royalties:Strategies and Limits for Proving Charles WalkerFulbright & Jaworski L.L.P.Houston
Remedies • Lost Profits • Injunction • Reasonable Royalty
Reasonable Royalties $ $ $ $ No, that’s crazy ------ Sketchy, but OK ------ Royalties $ Opinions 3
Reasonable Royalty • Licenses • Similar licenses • Scope • Policy • Relationship • Convoyed sales • Duration • Profitability • Advantages • Nature • Use • Industry norm • Attribution • Expert Opinion
Reasonable Royalty • The amount a willing licensor and a willing licensee would have agreed upon at the time infringement began
Reasonable Royalty Royalty Story • Put jury in shoes of the negotiator • Before liability story (?)
Garage Door Sensor Patent Owner
The Accused Tickle-You-Melmo Kid Sensor Tickler
Battle of the Experts Leprechaun: 10% royalty rate $1B revenue $100M damages
Battle of the Experts Scrooge: Lump sum $100k
Profits • 25% Rule • Time Period • Old profits: 1% • Recent profits: 30% • Profits Associated with Invention
Royalty Base • $1 sensor • $10 component • $100 doll • Entire Market Value Rule
Licenses • Tickle License: 12% • Sensor License: $20/doll • Settlement: $50k • Settlement: $10M Kid Sensor Tickler
USE • Extent of Use • What does claim cover? • Survey evidence?
Conclusions • Negotiation storyline • Rational royalty base • No short cuts (?) • Use/profit of “invention” • Link licenses
Thank You Charles WalkerFulbright & Jaworski L.L.P.Houston
Reasonable Royalties:Strategies and Limits Charles WalkerFulbright & Jaworski L.L.P.Houston