Intellectual Property: Valuation, Exploitation and Infringement Damages 2013 Cumulative Supplement, 11th Edition

CHAPTER 1B

U.S. CONGRESS FLIRTS WITH DISASTER (NEW)

   1B.1  PATENT LITIGATION VENUE

   1B.2  PATENT INFRINGEMENT DAMAGES

(a) Fooling with the Royalty Base

(b) Six-Year Rule

(c) No Change to Lost Profits

   1B.3  INJUNCTIONS FOR ONLY COMPETITORS

   1B.4  HARMING OUR ONLY ECONOMIC ADVANTAGE

As of this writing (November 2007), the Patent Reform Act of 2007 is being considered for passage by the U.S. Congress. The Senate version of the act is S. 1145. The House of Representatives calls its version H.R. 1908. As amended, S. 1145 reported out of committee on July 19, 2007. As amended, H.R. 1908 reported out of committee on July 18, 2007. On September 7, 2007, the House debated and passed H.R. 1908 EH by a vote of 220 to 175. If enacted in its present form, the act will likely have a significant impact on the U.S. patent system. The impact is very likely going to be negative.

The U.S. economy is driven by intellectual property, specifically patented inventions. In the main text and in this supplement, we discuss the enormous value and growth associated with intellectual property and, in particular, patented inventions. The growth of these assets is illustrated in a study by Ocean Tomo, an integrated intellectual capital merchant bank.¹ It conducted an analysis of the largest companies in the United States and found that patents, trademarks, copyrights, and other intangible assets have exploded as a percentage of the S&P 500's market value from 17% in 1975 to 80% in 2005 (see Exhibit ...