This article deals with the major valuation approaches for determining damages due to patent infringement, and the conditions that must exist in order to apply those approaches. Various court cases are cited that apply to valuing patent damages as well as economic principles that must be addressed by the analyst. A firm injured because of an infringement of its patent, should determine whether lost profits or reasonable royalty damage approaches are appropriate for it. At the minimum the firm will receive what the court determines is a reasonable royalty on the sales it lost to the defendant firm, but where possible, the plaintiff will want to satisfy the lost profits damage requirements.

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