Patent Infringement Damages Calculator
Estimate patent infringement damages using lost profits and reasonable royalty methodologies.
⚖️ Legal📐 Patent Damages = Lost Profits OR Reasonable Royalty (whichever is higher)
Annual sales lost to infringement ($)
Profit margin on those sales (%)
Years of infringement
Reasonable royalty rate (%)
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Patent Infringement Damages Calculator | Patent Damages = Lost Profits OR Reasonable Royalty (whichever is higher) | $ estimate |
Step-by-Step Examples
Example 1
3-Year Product Infringement
$500K annual sales, 40% margin, 3 years, 8% royalty rate.
- Lost profits: $600K | Royalty: $120K
- Damages: $600K | Willful: up to $1.8M
✓ $600K / up to $1.8M willful
Example 2
Software Patent
$2M annual sales, 25% margin, 2 years, 12% royalty.
- Lost profits: $1M | Royalty: $480K
- Damages: $1M
✓ $1M
Example 3
Small Infringement
$100K sales, 50% margin, 1 year, 10% royalty.
- Lost profits: $50K | Royalty: $10K
- Damages: $50K
✓ $50K
Real-World Applications
Patent Holders
Estimate damages from patent infringement.
IP Attorneys
Framework for patent damages analysis.
Patent Trolls vs Defendants
Understand both sides of damages analysis.
Economic Experts
Basis for patent damages expert opinions.
Common Mistakes to Avoid
⚠️
Lost profits require Panduit factors
To recover lost profits, patent holder must prove: demand for patented product, no acceptable substitutes, capacity to meet demand, and quantifiable lost profits (Panduit v. Stahlin).
⚠️
Reasonable royalty is the minimum
Even if lost profits can't be proven, the patent holder always gets at least a reasonable royalty (hypothetical negotiation standard, Georgia-Pacific factors).
Frequently Asked Questions
What is reasonable royalty? ▾
The amount a willing licensor and licensee would have agreed to in a hypothetical negotiation at the time infringement began. Courts use the Georgia-Pacific 15-factor test.
Treble damages for willful infringement? ▾
Courts may award up to 3× damages for willful or egregious infringement under 35 U.S.C. § 284.
Attorney fees in patent cases? ▾
Available in 'exceptional cases' — those involving willful infringement or objectively unreasonable litigation positions.