Should The Entire Market Value Rule Apply To Lost Profits?

Law360, New York (November 4, 2013, 12:59 PM EST) -- The Federal Circuit has raised the standard for applying the entire market value rule ("EMV rule") in a string of high-profile cases that make it more difficult for patent owners to recover royalty damages based on a patented component's contribution to the value of a multicomponent product. The rule's application to lost profits damages has received far less attention from courts and commentators.

In March 2011, however, the Federal Trade Commission recommended that the courts stop applying the EMV rule to lost profits claims because the rule "is not needed in an economic assessment of lost profits" and "distracts fact-finders from...

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