Empirical Study on Damage Award of Patent Disputes


Empirical Study on Damage Award of Patent Disputes
Ching-Yi Wu
Patent Infringement Damage Award, Lost Profits, Reasonable
Royalty, The Entire Market Value Rule, Empirical
The purpose of this study was to compare the scope of damage compensation
and calculations regarding patent infringement between the laws of ROC and
America as well as to discuss whether the damage compensation amounts determined
by these two countries are sufficient. First of all, it explained that the calculation
of damage compensation regarding patent infringement cannot be separated
from the but for world (non-infringement world) economy from the economic perspective.
Then it briefly introduced the statutory laws and case laws for damage
compensation related with patent infringement in America, incorporated with the
empirical researches made by American scholars aiming at this issue. Meanwhile,
the summary was made against the review and recommendations proposed by the
Federal Trade Commission (FTC) to the patent reform. After that, the relief system
for patent infringement and legal basis of damage compensation derived from infringement
were explained in brief. As to the empirical research, the subjects were
judgments of first instance made by intellectual property court for damage compensations
in related with patent infringement from July 1, 2008 until April 30, 2014. It first quantified the “winning rate,” “percentage of damage award,” “compensation
amount,” “awarded percentages for various scopes of damage compensation,”
and “awarded ratio for punitive damage compensation” via descriptive statistics
to explain the judgments made by intellectual property court aiming at damage
compensation in related with patent infringement. Following, the judgments of first
instance awarded to the patent owners and their damage compensations in preceding
research were read carefully to explain the quantitative results via qualitative
description and summarized that the reasons why the damage compensation
amount made by intellectual property court in first instance was less than the one
expected by the patent owner; the reason for relatively low compensation amount
determined by intellectual property court; the change of whether to adopt the profit
standards in the same industry, and as well as the application of the entire market
value rule. It is expected to verify the correctness of various assumptions via empirical
approaches and facilitate the sound development of relief system in related
with patent infringement.
Abstract Article



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