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Understanding the Lost-Sales-of-Unpatented-Items Theory in Patent Law
Definition & Meaning
The lost-sales-of-unpatented-items theory is a legal concept in patent law. It allows a plaintiff to seek compensation for profits they would have earned from selling unpatented items alongside patented items if the defendant had not infringed on the patent. This theory aims to provide a remedy for lost profits due to infringement, recognizing that the plaintiff's sales could have been affected by the defendant's actions.
Table of content
Legal Use & context
This theory is primarily used in patent infringement cases. It falls under civil law, where plaintiffs seek damages for lost sales resulting from a defendant's unauthorized use of patented inventions. Individuals or businesses involved in patent disputes may utilize this theory when they believe their sales have been negatively impacted by the infringement. Users can manage some aspects of these legal processes with the right legal templates available through US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company that sells a patented gadget also offers unpatented accessories. If a competitor infringes on the patent for the gadget, the original company can claim lost sales of the accessories that would have been sold alongside the gadget.
Example 2: A software developer sells a patented program and also offers unpatented add-ons. If another company illegally uses the patented software, the developer can seek compensation for the lost sales of the add-ons that would have been purchased by customers who bought the software. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Key Differences
California
Allows broader claims for lost profits in patent cases.
New York
Requires clear evidence of lost sales directly linked to the infringement.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Lost Profits
Compensation for profits that were not earned due to another party's actions.
Broader term, not limited to patent infringement.
Damages
Monetary compensation awarded in legal cases.
Can include various types of losses, not just lost sales.
Common misunderstandings
What to do if this term applies to you
If you believe you have lost sales due to someone infringing on your patent, consider the following steps:
Document your sales data and potential profits from both patented and unpatented items.
Gather evidence that links the defendant's actions to your lost sales.
Consult with a legal professional to discuss your options and the potential for a claim.
Explore US Legal Forms for templates that can help you file a claim or manage your case.
Find the legal form that fits your case
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