The Rule of Law Overrules the Rule of Thumb

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American Society of Appraisers Business Valuation Review™
Summer/Fall 2012 Volume 31, Issue 2 pp. 126-133
Robert P. Schweihs, ASA


A popular rule of thumb often used by experts to establish a baseline royalty rate for a patent has been discredited by the courts in a recent patent infringement case. Those who previously relied on that rule of thumb should consider alternative approaches to arrive at a reasonable royalty rate. This discussion describes the rule of thumb and alternative approaches to measure economic damages in a patent infringement case.
The Rule of Law Overrules the Rule of Thumb
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