Lost profits v. lost business

BVWireIssue #96-4
October 29, 2010

Using the landmark copyright case Viacom v. YouTube as an example, Mark Gottlieb  (MSG CPAs)explains how a lost profits case differs from a lost business case.  “In considering whether a case merits a claim for either or both, one must examine the facts and circumstance early in the litigation process to analyze the appropriate theory of recovery. The final determination can directly affect the appropriate damage calculations as well as the identification of proper claimants to the litigation. In some instances, the courts have allowed both lost profits and the decrease of the market value of the subject business; however, on some occasions, the court has allowed one or the other,” explains Gottlieb.

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