Friday, August 6, 2010

30% Royalty is not Excessive Even Though it Eliminates Profits on Infringing Sales

In denying defendant's motion for remittitur of a nearly $30 million verdict, the court rejected its argument that "it was improper to consider a royalty of thirty-four percent, which would not allow [defendant] any profit. To the extent [defendant] intended to suggest that the verdict was grossly excessive or monstrous, that argument fails. Although an infringer’s anticipated profit may be a consideration in determining a reasonable royalty, 'the law does not require that an infringer be permitted to make a profit.' In addition, the verdict was based on a royalty of thirty percent, not thirty-four percent."

Marine Polymer Technologies, Inc. v. HemCon, Inc., 1-06-cv-00100 (NHD August 3, 2010, Order) (DiClerico, J.)

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