Question

What is the maximum damages that may be awarded to the holder of a design patent if someone else is deemed to have infringed upon the patent?

A) 100% of the profits.

B) $500,000

C) Up to 14% of the profits.

D) A percentage of the profits based upon the percent of the whole product.

Answer 1

D) A percentage of the profits based upon the percent of the whole product.

Explanation: When a court finds infringement, the infringer usually must pay damages to the patent holder, either in the form of actual damages or a reasonable royalty for the unauthorized use. Actual damages include lost profits the patent holder would have realized but for the infringement, while a reasonable royalty depends on the type of product, other royalty arrangements, time remaining on the patent, and other issues. In addition to damages, the prevailing party is also entitled to costs. Costs include court filing fees and related litigation expenses.