IP Infringement Damages Expert Witness
Intellectual property infringement claims require precise quantification of compensatory damages and, where elected, an account of profits. A damages expert witness quantifies lost profits by analysing sales and margin diverted to the infringer or lost by the rights holder, addressing demand constraints, non-infringing alternatives, and apportionment of overhead. Reasonable royalty damages value the use of the IP through comparable licence transactions and hypothetical negotiation at the date infringement began.
The claimant must elect between compensatory damages and an account of profits - remedies that measure different things and may produce materially different outcomes. The expert calculates both so the legal team can make an informed strategic election. Additional damages under section 97(2) Copyright, Designs and Patents Act 1988 may be available where infringement was flagrant, requiring separate analysis of aggravating factors alongside financial quantum.
Trade mark passing off, patent invalidity co-defences, and cross-border licensing structures add complexity to apportionment and currency conversion. Reports are prepared for the High Court (Chancery Division), Intellectual Property Enterprise Court, and arbitration, with methodology that withstands scrutiny on comparable licences, profit margins, and the infringer's internal accounts where disclosed on disclosure.
Frequently Asked Questions
What is an account of profits in IP infringement cases?
An account of profits is an equitable remedy requiring the infringer to disgorge the profits made from the infringement - rather than compensating the claimant for their own loss. The claimant must elect between compensatory damages or an account of profits. The expert calculates both to inform the election.
How is a reasonable royalty calculated in patent cases?
The expert analyses comparable licence transactions, the value of the patented technology to the infringer, and the hypothetical negotiation between licensor and licensee at the date infringement began - arriving at a royalty rate that both parties would have agreed under fair bargaining conditions.
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