Patent infringement is a serious issue, and can result in a large amount of revenue being diverted from your business and into the hands of an infringing party. As a result, businesses understandably want to recoup lost revenue when their legitimate patents are infringed upon. Acting quickly in the event of patent infringement is critical, not only to protecting your business but also in building an effective case against an infringing party. Thankfully, businesses are able to recover damages as a result of successful patent litigation, as well as injunctive relief.
Lost Profits
Businesses are able to argue for the recovery of lost profits as a result of patent infringement. Recovering damages for lost profits, however, is easier said than done. It is often difficult to establish direct causality between the patent infringement and lost profits, and even more difficult to calculate and justify an accurate amount of profit lost. Because of this, the amount recovered from lost profits alone may not be enough to cover the impact on your business.
Reasonable Royalties
Because the recovery of lost profits may not cover the real damage done to your business, you may also be able to recover reasonable royalties. The amount of damages paid in reasonable royalties will be determined by what you argue to be a fair price if the infringing party had legitimately purchased royalties to the patent. Patent attorneys will often bring in the testimony of an expert to help determine a reasonable royalty for your patent.
Other Factors
The court will also take into consideration other factors surrounding the infringement of your patent, one of the most important of which is willful infringement. While an infringing party does not have to intentionally infringe on your patent for you to receive damages, if they are found to have done so willfully, they’ll likely have to pay a higher amount; up to three times the amount which was suffered by your business. Judges can award other types of damages, including punitive damages and recovery of attorney fees if deemed necessary.
Contact an Experienced Intellectual Property Attorney
If you’ve discovered a case of patent infringement, you should reach out to a qualified intellectual property attorney as soon as possible. When it’s your business on the line, don’t settle – contact the experts in automotive intellectual property law. We’re focused on protecting the best products in the industry. Contact us at (720) 221-4545, or via our website to see what we can do for you.
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