This paper describes the increasing importance of economic and financial analysis in determining the value of intellectual property—and of patents in particular—in the U.S. courts.

The 35 USC § 284 statute clearly defines the compensatory nature of patent damages and outlines one form of relief commonly seen in patent infringement damages estimation – reasonable royalty. The other form of patent infringement damage remedy is lost profits.

The eBay v. MercExchange case has affected the issuance of a permanent injunction in patent cases.