Damage Awards of Patent Infringement－Empirical Analysis of Taiwan IP Court and Highest Court with reference to the U.S. Practice
|關鍵字:||專利價值;專利侵權;損害賠償;實證研究;智慧財產法院;Patent Valuation;Patent Infringement;Damage Awards;Empirical Study;Taiwan IP Court|
The most basic right that comes with a patent is the right to exclude and to receive damage awards for patentees in patent infringement cases. It is crucial to accurately estimate patent value and damage awards since it would affect inventor’s incentive to invent as well as the patent system. There are three approaches the patentee could choose from to calculate damages under Paragraph 1 of Article 97 of Taiwan's Patent Act. The three approaches are “lost profits” measurements, “infringer’s profits” and “reasonable royalties”, respectively. Nevertheless, the three approaches are quite different. In addition, patent damages are not just a question with one simple answer. Until now, courts and juries still have difficulty calculating appropriate damages for patent infringement. This dissertation focuses on the most controversial issues including patent damages for complex, multi-patent products, determination of relevant costs to the infringer’s sale revenue, the change of whether to adopt the profit standard of the same trade concerned, liabilities among infringers on the same supply chain, usage of multi-approaches and so on. First, this dissertation refers to the regulations, practices, and trend of patent damage awards in the U.S., Japan, and Germany including statutes and cases. This dissertation performs an empirical analysis of patent damages on the cases adjudged by Taiwan Intellectual Property (IP) Court. The empirical research quantifies with descriptive statistics for various approaches to damage compensation, effects of the percentage of damage awards after the amendment to Patent Act, affirmed appeals rate, etc. Based on the quantitative data, this dissertation examines the reasons why there is a huge gap between the expected value of the patentee and the damage awards from the court judgment. Furthermore, qualitative research is also conducted by analyzing the contents of 196 cases from the decisions of IP Court and Supreme Court. Consequently, this dissertation attempts to establish an optimal model for applying related provisions in future judicial practice. The proposed model could contribute a common guideline for the determination of an amount of damages and thus it is expected to promote the consistency and predictability of court decisions.
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