Definition
Damages are the monetary compensation a court awards to a patent owner for infringement, calculated as lost profits or at least a reasonable royalty.
Why It Matters Legally
Damages determine the financial stakes of infringement and drive settlement decisions. The method of calculation, and whether damages are enhanced for willfulness, can swing awards dramatically.
Example Use Case
After proving infringement, a patent owner is awarded damages based on the profits it lost to the infringing competitor.
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Related Terms
Reasonable Royalty, Lost Profits, Enhanced Damages, Willful Infringement, Patent Litigation