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"Case Studies" > IP - Licensing > Graphics That Make Georgia-Pacific Factors Understandable

Graphics That Make Georgia-Pacific Factors Understandable

Summary:


This type of graphic can be used by counsel in a patent infringement
case as a sort of scorecard to measure the impact of discrete factors
on a reasonable royalty rate.

In intellectual property licensing matters, determination of so-called “reasonable royalties” is often contentious, and in highprofile matters can mean millions—if not hundreds of millions of dollars difference in damages. The Georgia-Pacific factors are not a formula for solving this puzzle but instead offer a framework for analysis of information. The factors deal with major parameters of the license at issue (factors 3 and 7); whether other licenses provide useful information (factors 1, 2, and 4); consideration of costs to the licensor for granting a license (factors 4 and 5); benefits to the licensee of obtaining a license (factors 6, and 8-13); and finally, opinions of experts and results of hypothetical negotiations (factors 14 and 15).


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