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Patents are vital to the United States economy. Abraham Lincoln alluded to the importance of patents when he said that patents “add[] the fuel of interest to the fire of genius, in the discovery and production of new and useful things.” Indeed, many companies would cease to exist were it not for the limited-time monopoly granted by patents. In light of the importance of patents, it is equally important that the legal frameworks under which the United States patent system operates are robust; one such framework is the standard for assessing reasonable royalty damages. Reasonable royalty damages are one source of compensation for patent holders when they suffer harm due to patent infringement. In fact, they provide a last resort remedy for patent holders who can seek refuge nowhere else. In general, the reasonable royalty assessment contemplates what amount a willing licensee would have agreed to license the patent for when infringement began. In other words, the assessment seeks to determine “the difference between [the patent owner’s] pecuniary condition after the infringement, and . . . if the

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Reasonable Royalty Patent Infringement Damages: A Proposal for More Predictable, Reliable, and Reviewable Standards of Admissibility and Proof for Determining a Reasonable Royalty