FTC Recommends Revising Patent Notice And Rewards

Law360, New York (March 7, 2011, 5:45 PM EST) -- A Federal Trade Commission report released Monday says innovation and investment are being stymied by a patent system that encourages unnecessary infringement litigation and by overly broad, unclear patent claims at the notice stage.

The report recommends capping royalty rewards in infringement cases at the value a reasonable licensee would pay for the patented technology, to dissuade predatory intellectual property litigation.

“Patent damages that undercompensate patentees for infringement can deter innovation,” the FTC said in a statement. “But overcompensation can lead to higher prices and encourage...
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