The 25 Percent Rule In Patent Damages: Dead And Now Buried
Mondaq Business Briefing › United States Law Articles in English (2011)
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The 25 Percent Rule In Patent Damages: Dead And Now Buried
By Dr. David Blackburn and Dr. Svetla K. Tzenova
The United States Court of Appeals for the Federal Circuit's (CAFC) 4 January 2011 ruling in Uniloc USA, Inc. v. Microsoft Corp. ("Uniloc") marked an important change in patent infringement litigation. The CAFC ruling unequivocally rejected use of the long-standing "25 Percent Rule" in determining patent damages, calling it "a fundamentally flawed tool for determining a baseline royalty rate in a hypothetical negotiation" and a "rule of thumb" whose application "fails to meet the Daubert standard for admissibility." The CAFC ruling noted that the 25 Percent Rule has "met its share of criticism" primarily for failing to accou...See the full content of this document
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