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Damages that can result from patent violations

Mar 30, 2020 | Patent Law

Producing or selling a product that uses patented material without permission from the patent holder is infringement. It can happen intentionally or unintentionally, but in either case, infringement can trigger legal action.

Patent infringements can result in expensive and extensive damage for the holder of a patent. As such, if someone has infringed on your patent, pursuing full and fair compensation from the infringing party can be crucial. Under federal patent laws, parties can potentially collect the following types of damages.

    • Royalties: A royalty is the sum of money the infringing party would have needed to pay to license patented material properly. Courts can order reasonable royalties; they could also triple the damages if the infringement was intentional.
    • Lost profits: If you lost money as a result of the other party’s infringement, you could seek to recover this money. Such losses can happen if a competitor sells or otherwise makes available to customers a product that infringes on your patent.
    • Interest and other costs: The courts can also award interest on royalties and additional costs, such as legal fees, at its discretion.

To calculate damages and build a successful case, patent holders should seek legal guidance and testimony from experts who can analyze the financial ramifications of the infringement.

Other important details of a specific case will play a significant role in determining damages. For instance, whether the infringement was intentional or not will be a critical detail. The number of parties involved in the infringement can also affect damages.

In addition to the potential for financial penalties, courts may order injunctive relief. Essentially, this is a court’s demand that the infringing party stops specific actions. Such actions would include using or selling protecting material.

Patent violations can do a great deal of harm, so it is crucial to take infringement seriously. Even though legal action cannot undo the damage caused by infringing parties, it can hold them accountable and put a stop to unauthorized actions.

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