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  • Patent Remedies and Complex Products
  • Toward a Global Consensus
  • Online publication date: July 2019
  • pp 338-344

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Index

Australia
enhanced damages, 95
lost profits availability, 56
lost profits, unwitting infringer, 56
bargaining power, 246
bargaining power discount, 249
circularity, 251
high discount rate, 247
incremental value, division of, 25
independent creation, 252
information asymmetries, 253
informational disadvantage, 253
Nash Bargaining Solution, 246, 248
optimal patent term, 250
Canada
disgorgement, 75, 81, 83
enhanced damages, 95
lost profits availability, 56
preliminary injunctions, 124
reasonable royalty factors, 14
China
antimonopoly law, 222
bundling, 225
calculating damages, 201
damages, 8
disgorgement, 79
enhanced damages, 95
exclusionary abuses, 219
FRAND, 187, 201
litigation cost recovery, 105
lost profit awards, 58
lost profits availability, 58
Chinese Patent Act
disgorgement, 79
circularity, 36
discounting, 37
holdup/holdout circularity, 36
probabilistic circularity, 36
competition law
anticompetitive effects, 216
antitrust agencies, 206
behavioral remedies, 233
bundling, 224, 225
complex products, 209, 223, 236
EU competition law, 207
exceptionalism, 207
excessive pricing, 224
FRAND licensing, 215, 221
future licensing, 218
goals, 204
holdout, 212
holdup, 212
injunctive relief, 212, 213, 233
level discrimination, 226
monetary remedies, 232
multi-level licensing, 228
patent acquisition, 231
patent pools, 228
price discrimination, 224
privateering, 230
refusal to supply, 221
SEP holder obligations, 210, 217, 219
tying, 224, 225
unfair trading conditions, 220
complementarity, 20
complex products
complementarity, 20
incremental value, 19
Daubert
reasonable royalty, 47
deterrence
underdeterrence, 9
disgorgement, 7289
burden of proof, 88
definition, 50
deterrence, 73
differential profit method, 82
drawbacks, 80
fixed costs, 85
objective, 50
potential benefits, 80
unjust enrichment, 72
enhanced damages, 91104
calculating multipliers, 288
catch-me-if-you-can problem, 98
criminal sanctions, 96
detering beneficial challenges, 100
effect on patent reading, 101
EU Enforcement Directive, 94
holdout, 98
objective recklessness, 92
promoting innovation, 97
purpose, 97
underdetection, 100
willfulness findings, study of, 92
entire market value, 42, 44, 64
European Union
disgorgement, 76
enhanced damages, 94
exclusionary abuses, 219
FRAND, 165, 175
injunctive relief, 126
level discrimination, 227
litigation cost recovery, 105
lost profits availability, 57
ex ante
assessing social value, 244
contingent ex ante approach, 244
ex ante negotiation, 243
incentive to invent, 245
lock-in cost, 245
pure ex ante approach, 244
sunk costs, 243
France
disgorgement, 78
injunctions, abuse of rights, 142
lost profits availability, 57
preliminary injunctions, 124
FRAND
abuse of rights, 190
bottom up approach, 168
comity device, 176
enhanced damages, 163
EU competition law, 176, 183, 188
FRAND royalty rates, 167
Georgia-Pacific factors, 162
holdout, 164
infringement notification, 178
injunctive relief, 171190
jurisdictional issues, 184
licensing offer, 179
monetary damages, 161171
proportionality, 189
reasonable royalty calculation, 162
refusal to license, 166
standard-essential patents, 164
top down approach, 168, 170
Treaty on the Functioning of the European Union, 165
Georgia-Pacific
alternatives, 16
criticism of, 14
factors, 14
fundamental questions, 15
incremental value, division of, 24
post-infringement evidence, 32
restructuring analysis, 15
similar factors, Canada, 14
similar factors, Germany, 14
similar factors, Japan, 14
German Patent Act
calculating damages, 77, 191
estimating damages, 192
monetary damages, 191
Germany
disgorgement, 77
FRAND, implimenter response, 182
FRAND, infringement notification, 178
FRAND, licensing offer, 179
FRAND, monetary damages, 165
FRAND, royalty calculation, 181
FRAND, time limits, 178, 183
hypothetical bargain, information available, 28
injunctive relief, 125, 142
level discrimination, 226
lost profits availability, 57
preliminary injunctions, 124
reasonable royalty factors, 14
holdout, 284289
calculating multipliers, 288
catch-me-if-you-can problem, 284, 285
competition law, 212
definition, 284
European holdout model, 284
fee shifting, 287
injunctive relief, 286
litigation costs, 285
transaction cost reforms, 289
undercompensatory damages, 282, 288
underdetection, 287
underdetection and enhanced damages, 287
holdup, 254271
apportionment problem, 258
assessing excessive royalty, 296
asymmetric stakes in litigation, 287
case studies, 295, 296
competition law, 212
competitive markets, 266
complex products, 258, 261
definitions, 254
difficulty assessing royalty, 269
distinguishing royalty stacking, 294
downstream firms, 266
early negotiation, 264
economic literature, 302
elasticity of demand, 268
evidence of systematic problem, 294
ex ante licensing, 271
ex ante negotiation, 272
ex post royalties, 255
fairness-based norms, 273
hindesight bias, 282
inelastic demand, 267
injunctive relief, 268
liability rule, 279
licensing business model, 270
litigation costs, 263
lost profit damages, 269
mitigating mechanisms, 271
network effect appropriation, 256
network effect value, 297
overcompensatory jury awards, 282
patent ambush, 297
patent central to product, 263
patentee pays switching costs, 275
probabilistic patents, 259
redesign cost, 262
repeat bargaining, 273
royalty burden of proof, 281
stay of injunction, 274
study of, 299
sunk costs holdup, 255, 256
sunk R&D costs, 265
switching costs, 261, 275
undercompensatory damages, 279
unwilling licensor, 275
hypothetical bargain, 9, 2223
circularity, 36
comparability, 34
contingent ex ante approach, 31
ex post information, 33
multiplier, 37, 38
prior settlements, 39
probabilistic discounting, 40
timing of, 28
incremental value, 19
best patented alternative, 241
comparables, 26
course of dealing, 26
custom of the industry, 26
definition, 17
determining value, 242
division of, 23
economic value, 19
relevant evidence, 26
royalty benchmark, 239
social value, 19, 240
value to different users, 242
India
exclusionary abuses, 219
lost profits availability, 58
unwitting infringer, 58
Indian Patent Act
lost profits, 58
injunctions
abuse of rights, 125, 141
as a matter of right, 125
automatic injunctions, 125
burden on the public, 117
causal nexus, 129
civil law systems, 141143
complex products, 120, 125, 130, 140
design around, 124
discretionary, 125
disproportionality, 124, 152, 153
eBay factors, 127
economic arguments, 118
empirical factors, 128
EU Enforcement Directive, 126, 139
expected harms, 123
FRAND, 125, 134
good faith, 138
harm to enjoined parties, 148
harm to the public, 150
harm to third parties, 149
holdout, 120, 121
holdup, 120, 121, 125
incremental worth, 148
indirect monetary value, 115
irreparable harm, 129
liability rule, 119
market exclusivity, 131, 132
matter of right, 141
noncompensable harm, 151
ongoing reasonable royalty, 157
oppressive to defendant, 136
over-reach, 121
permanent injunction, 127
preliminary injunctions, 122, 123
property rules, 119
proportionality, 140
public interest, 133, 140
rationales, 115
right to exclude, 115, 116
scale of infringement, 147
standard-essential patents, 134, 140, 142
study of, 129, 131
switching costs, 118
tailoring, 133, 155
transaction costs, 277
TRIPS Agreement, 116, 117, 143
undue delay, 132, 138
United Kingdom, 134141
United States, 127134
interest, 111114
Federal Reserve survey rate, 113
restitutionary interest rate award, 113
undercompensatory prejudgement interest, 111
Italy
injunctions, abuse of rights, 142
Japan
abuse of right, 200
disgorgement, 79
enhanced damages, 96
FRAND, 169, 186, 187, 189, 200
injunctions, abuse of rights, 142
Japanese Institute of Inventors and Innovation (Hatsumei Kyokai), 12
litigation cost recovery, 105
lost profits, 57, 58
reasonable royalty factors, 14
standard royalty rate, 12
statutory prejudgment interest rate, 113
study of, 7
Japanese Patent Act
disgorgement, 79
FRAND, injunctive relief, 185
lost profits, 57
Korea
FRAND, 185, 189, 199
injunctions, abuse of rights, 142
monetary damages, 199
liability rule
bias in damages assessment, 278
definition, 276
injunctions, 119
speculative uses, 277
litigation cost recovery, 104111
costshifting, study of, 109
effects of awarding costs, 108
EU Enforcement Directive, 104
exceptionality requirement, 107
lost profits, 5172
apportionment, 66
availability, 52, 5558
awards, study of, 55
compensable lost sales, 64
convoyed sales, 64
definition, 50
derivative sales, 65
emotional harm, 69
forseeable lost profits, 54
future losses, 69
harm to subsidiaries, 69
loss of chance, 71
lost economies of scale, 69
mixed awards, 55
non-infringing alternatives, 60
objective, 50
opportunity costs, 69
Panduit factors, 53
price erosion, 51
reputational damage, 69
standard, United States, 53
study of, 58
unpatented products, 64
unwitting infringer, 56
Model Patent Jury Instructions, 15
Nash Bargaining Solution. See NBS
NBS (Nash Bargaining Solution)
incremental value, division of, 24
Netherlands
injunctions, abuse of rights, 142
willing licensee, 212
non-infringing alternative, 20
nonpracticing entity. See NPE
NPE (nonpracticing entity), 7
option effect, 280
royalty rate errors, 280
patent strength, 254
discounting, 254
Poland
FRAND, abuse of rights, 183
price discrimination, 35, 46
property rule
definition, 276
difficulty assessing royalty, 276
injunctions, 119
proposed further research, competition law
constraints on licensing terms, 238
flexibility of antitrust remedies, 238
injunctive relief, 238
level discrimination, 238
trade offs with patent law, 237
use of patent pools, 238
proposed further research, disgorgement
accounting of profits, 82
availability, 81
burden of proof, apportionment, 89
proposed further research, enhanced damages
justifiable variations across jurisdictions, 104
patent reading, 104
proposed further research, FRAND
enhanced damages, 171
royalty methodologies, 171
proposed further research, holdup
accuracy of damages and injunctive relief, 284
proposed further research, interest
rates awarded in U.S. courts, 114
simple versus compound interest, 114
proposed further research, litigation cost recovery
awards under Equal Access to Justice Act, 111
practical aspects of fee shifting, 111
reduce cost of litigation over fees, 110
settlements in countries with mandatory fee shifting, 111
proposed further research, lost profits
burden of proof, non-infringing alternatives, 62
idle patents, 66
infinger’s degree of fault, 59
loss of chance, 72
moral prejudice, 71
non-infringing alternatives, 64
patented next-best alternative, 62
standard presumption, 60
proposed further research, reasonable royalty
disclosure of license terms, 41
incremental value, division of, 25
jury preferences re royalty rates, 44
non-infringing alternatives, 22
psychology of judges and juries, 46
reasonable royalty calibration, 49
reasonable royalty, 649
analytical approach, 11
anchoring, 43
bottom-up approach, 16
calibration, 49
comparable licenses, 33
complements, 20
contingent ex ante approach, 31
entire market value, 42, 44
established royalty rate, 12
ex post information, 32, 33
expert evidence, 47
Georgia-Pacific factors, 14
incremental value, division of, 23
industry standard rates, 12
information set, 30
kickers, 48
overcompensatory, 43
patented non-infringing alternatives, 20
principal recommendation, 1619
proof of damages, 47
restitutionary view, 9
restorative view, 8
SSPPU, 42, 45
timing of hypothetical bargain, 28
top-down approach, 12
recommendations, disgorgement
accounting of profits, correct approach, 85
cost savings, 61
discretion of the court, 81
elect accounting or damages, 88
fixed costs, 86
U.S. design patent approach, 84
recommendations, enhanced damages
assessed in light of efficacy, 103
evaluate deterrent effect, 103
recommendations, FRAND
assessing royalty rates, 171
balancing equities, 190
conditions on injunctive relief, 190
recommendations, injunctions
against automatic injunctions, 144
discretionary award, 144
disproportionate harm, 146
ongoing reasonable royalty, 145, 157, 158
proportionality, 145
tailoring, 144, 156
recommendations, interest
rates reflecting cost of borrowing, 114
reconsideration of statutory rates, 114
recommendations, litigation cost recovery
compensate costs actually incurred, 110
more generous costshifting rules, 110
recommendations, lost profits
“but-for” causation, 59
defining “profit,” 61
preferred measure, 58
recognize non-infringing alternatives, 61
recoverable losses, 65
substitutability of non-infringing alternatives, 62
recommendations, reasonable royalty
ancillary services or risks taken, 25
apply comparables and market evidence with caution, 41
comparables, 34
contingent ex ante approach, 31
entire market value, 46
expert evidence, 47
flexible approach to hypothetical bargain, 29
hypothetical bargain framework, 22
incremental value over patented alternative, 21
kickers, 49
principal recommendation, 16
royalties commensurate with value, 19
using competent evidence, 27
royalty stacking
Cournot complements, 290
definition, 289
distinguishing holdup, 294
evidence of systematic problem, 294
input price setting, 292
patent pools, 292, 298
redesign costs, 290
royalty benchmark, 295
study of, 300
tacit coordination, 293
two-stage quantity setting-model, 293
SDO (standards-development organizations), 160
SEP (standard-essential patent)
hypothetical bargain, timing of, 29
non-infringing alternatives, 21
smallest saleable patent-practicing unit. See SSPPU
Spain
preliminary injunctions, 124
SSPPU (smallest saleable patent-practicing unit), 42, 45
standard-essential patent. See SEP
standards-development organizations. See SDO
sunk costs
circularity, 41
holdup, 30
hypothetical bargain, timing of, 29
Switzerland
agreement to contract, 195
calculating damages, 196, 197
effect of FRAND, 196
injunctions, abuse of rights, 142
reasonable royalty, 198
Swiss Code of Obligations, 196
Taiwan
enhanced damages, 96
TRIPS Agreement
criminal penalties, 96
injunctions, 116, 143
limitation of remedies, 117
U.S. Patent Act
disgorgement, design patents, 75
enhanced damages, 91, 92
injunctions, 127
lost profits, 52
prejudgement interest presumption, 111
UK Patent Act
lost profits availability, 55
United Kingdom
bundling, 225, 226
disgorgement, 78, 81
enhanced damages, availability, 94
FRAND, 169
hypothetical bargain, 11
injunctions, 125, 134
lost profits, 55, 56, 61
preliminary injunctions, 124
tying, 225
willing licensing, 212
United States
apportionment, 66
consent decrees, 234
damages reports, 6, 7
disgorgement, availability, 75
enhanced damages, 288
forseeable lost profits, 54
FRAND, 171, 174, 175
hypothetical bargain, 11, 28
injunctions, 125, 126, 127
jury bias, 282
litigation cost recovery, 106
lost profit awards, 55
lost profits, 56, 64
Patent Act, lost profits, 52
post-judgment interest, 112
prejudgement interest presumption, 111
preliminary injunctions, 124
proof of reasonable royalty damages, 47
royalty rates awarded by juries, 43
unfair competition, 218
willing licensee, 212