Entire Market Value Rule Vs. 'Convoyed Sales' Rule
Law360, New York (April 7, 2014, 12:25 PM EDT) -- The economic rationale for applying the entire market value rule ("EMV rule") to lost profits claims is unclear. The Federal Trade Commission has taken the position that the EMV rule should not apply to such claims because the rule "is not needed in an economic assessment of lost profits" and "distracts fact-finders from a careful reconstruction of a market lacking infringement." In a Nov. 4, 2013, article for Law360, we discussed a district court decision, Electro-Mechanical Corp. v. Power Distribution Prods. Inc., that applied the EMV rule to overturn a jury award of lost profits, and we explained the disconnect between the FTC's economics-based approach and the outcomes that follow from the EMV rule....
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