Patent Infringement Damages Evaluation Research

Determination of patent infringement damages amount has been plagued China ’sjudicial practice. Both the legal system and the Market economy call for a practicable patentinfringement damages evaluation system, which this paper is aiming at.There are two arguing methods used in the paper to analysis and settle patentinfringement damage evalution problems. One is the comparision analysis, by whichintroducting the features of the evaluation of the two different law systems, and analysisng theadvantges and disadvantages. The other one is the economic analysis methods, by whichcombining econometric models with Patent infringement damages evaluation practices.This paper canbe divided into five parts by its research ideas:First part, introducing the basic concepts of Patent infringement damages evaluation.Firstly, showing the necessity to build a proper evaluation system through introducing theneeds of judicial procedures and markets. Then, describe the dissimilarities between thepatent infringement damages evaluation system and patent assets evaluation system, and itshows concretely as follows: the purposes of the evaluations, the objects of the evaluations,the basic periods of the evaluations and the methods of the evaluations.Second part, distinguishing regulations and practices between the common law systemand the civil law system. The paper makes the United States and the Great Briten as thetypical of the common law countries, and German, Japan and Taiwan as the typical civil lawcountries, introduces their regulations and practices, and gives estimations separately.Third part, going back to our country’s evaluation practice, and trying to build areasonable damages evaluation system.At first, the paper raises the problems of China’s current patent infringement damagesevaluation system. Then, aiming at the existing problems, combining with the practicalexperience of other countries, the paper gives suggestions to improve the existing evaluationsystem from three aspects: the modes of evaluation, the methods of evaluation and supportingsystems. Based on the damages Method in the patent law, the paper proposes three modes ofevaluation: the mode of lost profits, the mode of illegal profits and the mode of reasonalroyalty, and studies the independent variables and the dependent variable which may have aneffection in the modes above. At the same time, the paper argued the relationship between themodes, and These three modes are in a progressive using sequence: the mode of lost profits should be considered prior, and followed the mode of illegal profits and the last is the mode ofreasonable royalty. Later, when it comes to the methods of evaluation, the paper mainlyconsults the asset valuation method, and makes an improvement by putting forward marketingmethod, the margin method and the economic models method. Afterwards, the paper appliesthose modes and methods into a typical patent infringement case, to show how thoseimprovements function on determine the damages. Lastly, the paper gives some suggestionabout the supporting systems: the legal system and social system. The legal system includesstandardizing the subjects related to the evaluation, confirming the evaluation’s base period,adjusting evidence system appropriatly and clearing the subjects’ responsibilities. The socialsystem includes strengthening the professional training and management, establishing adatabase of the damages in the patent field and promoting a collaboration betweenevaluation-related fields.The forth part is the conclusion of this paper. It is a brief summary of the full tesxt’spoints of views, as well as the ideas.