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Estimating Hypothetically Negotiated Royalty Rates after MedImmune, Inc. v. Genentech, Inc., et al.
- Article from:
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Journal of Legal Economics
- Article date:
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March 1, 2008
- Author:
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Copyright informationCopyright American Academy of Economic and Financial Experts Mar 2008. Provided by ProQuest LLC. (Hide copyright information)
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Abstract On January 9, 2007, the opinion by the Supreme Court of the United States in MedImmune, Inc. v. Genentech, Inc., et al., ruled that a firm, while paying royalties on a patent under an arm's length license agreement, may judicially challenge the validity of that patent. This departure from prior precedent impacts negotiated license agreement royalty rates in the marketplace. Consequently, the estimation of hypothetically negotiated rates in patent litigation is affected. The effects on the marketplace and on the estimation of hypothetically negotiated rates are discussed in this article.
(ProQuest: ... denotes formulae omitted.)
Introduction: Discussion of the Opinion
On January 9, ...