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Intellectual Property

Sep. 3, 2010

Ongoing Patent Royalties: How Should They Be Calculated?

With courts being cautious about granting injunctions to ban future patent infringement, issues about ongoing patent royalties abound.

Craig E. Countryman

Principal, Fish & Richardson PC

Email: countryman@fr.com

Until recently, patent holders that prevailed in an infringement suit could usually obtain an injunction to prohibit future infringement. But eBay v. MercExchange, 547 U.S. 388 (2006) changed this norm by holding that injunctions in patent cases are appropriate only if the patentee can show that future infringement is an irreparable injury for which damages are an inadequate remedy. After eBay, many lower courts have denied injunctions where the patentee does not practice i...

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