Vectura Ltd. v. GlaxoSmithKline LLC – Reasonable royalty damages reflect built-in apportionment

Description

Abstract: Valuation experts commonly use the reasonable royalty method to measure damages in patent infringement cases. When a royalty base is the “entire market value,” an expert may apportion it among the product’s infringing and noninfringing components. But when reasonable royalty damages are based on a sufficiently comparable license, apportionment is often unnecessary. This article summarizes a recent Federal Circuit decision in which the court ruled that apportionment was already built into the expert’s model. A sidebar explains how the relief from royalty method works. Vectura Ltd. v. GlaxoSmithKline LLC, 981 F.3d 1030 (Fed. Cir. 2020).