• The reasonable-royalty standard often serves as the measure of damages in a claim of patent, copyright, or trademark infringement, or for misappropriation of trade secrets. In deciding what royalty is reasonable in a trade-secrets suit, courts consider the unique circumstances of the case, as well as (1) how the use affected the parties’ ability to compete; (2) the cost of past licenses; (3) the cost to develop the secret and its present value; (4) how the defendant intends to use the information; and (5) the availability of alternatives. [Cases: Patents 319(1). C.J.S. Patents §§ 565, 567–568.]
reasonable royalty
A royalty that a licensee would be willing to pay the holder of the thing’s intellectual-property rights while still making a reasonable profit from its use.
