Volume 15, Issue 3 (2011)                   CLR 2011, 15(3): 113-152 | Back to browse issues page

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Issaei Tafreshi1 M, Sadeghi2 M, Shahmohamadi3 M. Patentee’s Lost profits, as a Criterion for Remedies due to Infringement of Patent in Iran and US law. CLR 2011; 15 (3) :113-152
URL: http://clr.modares.ac.ir/article-20-4157-en.html
1- 1- Professor, Department of Law Tarbiat Modares University, Tehran, Iran
2- 2- Associate Professor, Department of Law Tarbiat Modares University, Tehran, Iran
3- 3- Ph.D. Student, Department of Law Tarbiat Modares University, Tehran, Iran
Abstract:   (6293 Views)
     Since the majority of damages due to infringement of patent are lost profits, it is essential to govern its compensation. The US legal system has admitted the owner lost profits and reasonable royalty as two criteria for determining compensation. According to 4-staged Panduit’s way, in case of existence of demand in the market, absence of substitute in the market, patentee's ability to meet demand and proving profit margin, the 1st criterion is exploited. According to lost profits, only those profits can be compensated whose causes are available and the obstacle is absent. In case that even one of the Panduit’s requirements is not met or, at the request of the patentee, the amount of compensation is determined in compliance with the reasonable royalty. In Iranian law, separation of remediable and irremediable profits is treated like that of the USA, and only part of the future profits is remediable according to the principle of lost profits. In other words, patent profits fall into 3 categories as existing, pseudo-existing and probable. The 2nd category whose cause is available and the obstacle is absent, is remediable like the 1st category, as it can be commonly considered pseudo- existing, whereas the 3rd category is irreparable due to the absence of causes or presence of obstacle.      
     

Received: 2011/05/9 | Accepted: 2011/07/19 | Published: 2012/09/1

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