Wednesday, October 23, 2013

Cisco General Counsel Reports Tide Turning Against NPEs (Patent Trolls): Judge Holderman Finds Royalties Based on Smallest Salable Unit and Proportional to ALL Patents in a Technology

Cisco Systems General Counsel Mark Chandler
has good news at Forbes for the innovation economy
The Tide's Turning Against Patent Trolls
referring to an October case in Illinois
which ruled that patent royalties should be determined by:
  • the "smallest salable unit",
    e.g. the "chip" in question and not some larger product into which the chip is integrated and not some broader service in which it is used,

  • a proportionate value assessed for the total range of patents applicable to the technology in question.
In our view, that is the correct standard of patent value.

The ruling in In re Innovation IP Ventures, LLC Patent Litigation was issued by U.S. District Court Judge James F. Holderman, Chief Judge of the Northern District of Illinois and James C. Wood Distinguished Lecturer in Intellectual Property at the University of Illinois College of Law.

These are the kinds of competent judges that have been lacking in patent law and, if possible, that should be appointed to the Federal Circuit, but seldom have been.

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