| This thesis explorers the necessary functions and process required to estimate lost profit damages for IT start-ups. The focus is placed on analyzing the role of expert witness in lost profit calculation, approaches to calculate lost profit, and use of Georgia Pacific to evaluate damages in patent infringement cases. The methodology includes defining the system for patent infringement cases and use of discount rate and decision tree analysis. The valuation is structured to calculate a risk-adjusted net present value, according to three distinct probability scenarios (best-case, most-likely-case, and worst-case). The valuation is designed to use Georgia Pacific factors in estimating value of damages due to patent infringement.;To demonstrate the methodology, a case of Amazon.com v. Barnesandnoble.com is analyzed. Amazon.com and Barnesandnoble.com are leading online book sale retailers. Amazon.com has patented a method and system for placing an order to purchase an item via the Internet. Barnesandnoble.com wrongfully used the patented technology to increase its online book sale. |
