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New Math for the Entire Market Value Rule

By Robert Buergi
December 20, 2010

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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