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The entire market value rule lets a patentee recover damages based on the market value of a product that includes a patented invention, even if the patented invention is only a small part of the entire product. Patentees favor this rule because it often lets them begin their damages calculations with a high dollar amount. But a recent order from the Eastern District of Texas shows that patentees may not be able to calculate damages under the entire market value rule using a simple (market value base ' royalty rate) formula. Such damages calculations may be excluded from trial, leaving the patentee seeking to recover a fraction of the original damages figure.
The Entire Market Value Rule
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The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
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