Differentiating Patent Value From Patent Damages

It is not uncommon for patent lawyers and/or patent owners to use the terms "patent value" and "patent damages" interchangeably. In some instances, patent damages experts have been known to use patent values as an input to the determination of damages. While there are some similarities between how patent value and patent damages are determined, there are also many important differences such that the value of any particular patent will almost certainly be different than the damages associated with that same patent.

This presentation will explore the similarities and differences between patent value and patent damages. In particular, we will explore how the three different traditional valuation approaches - Cost, Market, and Income - are implemented differently in a valuation versus damages context. We will also refer to patent damages case law to show how the Federal Circuit and U.S. District Courts have addressed the use of patent value as part of the determination of patent damages.