An important element in many trademark infringement actions is the determination of any damages that have been suffered by the plaintiff. A specific approach to the expert calculation of damages is the topic of the latest article by David Drews, CLP – President of IPmetrics – published this month in Intellectual Property Today.
The article, “Reasonable Royalty Damages in Trademark Cases: A Modified Georgia-Pacific Framework for Setting Royalty Rates,” highlights how the various factors used to determine reasonable royalty compensation in patent infringement disputes can be effectively utilized in trademark / trade dress infringement litigation via appropriate alterations that take into consideration the differences between trademarks and patents.
At the federal level, once liability is proven, the Lanham Act provides for the recovery of defendant’s profits, actual damages sustained by the plaintiff and the costs of the action, subject to principles of equity.
Although US Trademark Law does not explicitly list a “reasonable royalty” as a remedy in trademark infringement matters, this award based on Patent Law as compensation for infringement damages has been recognized as an appropriate alternative in Trademark cases for decades.
This makes sense from an economic perspective since royalty rates have long been utilized as pricing and value indicators for intellectual property of all kinds, including trademarks.
However, as a reasonable royalty is not appropriate in every trademark infringement situation.
The article is available in the print and online versions of Intellectual Property Today.
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