PATENT INFRINGEMENT: RECENT CASE
The Uniloc USA, Inc. v. LG Electronics USA, Inc. case in 2023 is a notable decision that provided clarification on how damages related to patent infringement should be calculated. Particularly emphasis was placed on realistic valuation approaches. No longer will rules of thumb or defacto “standards” suffice or replace practical methodology.
- Case Overview
- Uniloc, a patent holding company, sued LG Electronics for infringing on its patents. The core issue was how to determine the appropriate damages for patent infringement.
- Legal Principle
- The court stressed the importance of using reliable, fact-based methods for patent valuation.
- Damages should reflect the actual value of the patent at the time of infringement, avoiding speculative or overly hypothetical calculations.
- Valuation Approach
- The court highlighted the importance of using comparable licensing agreements, market evidence, or cost-based methods where appropriate.
- The decision also underscored that damages should not be inflated using overly optimistic or unsubstantiated projections.
- Impact on IP Valuation
- The ruling reinforces the need for rigorous, documented valuation methods.
- It signals to parties involved in licensing or litigation that courts will scrutinize the methodological accuracy of damages calculations.
- The case encourages use of market-based evidence over unsubstantiated estimates when assessing patent value.