Unreasonable Royalties

Wed Jun 05 16:24:38 EDT 2002
By Dr. Lauren Stiroh

NERA hosted a seminar, "Unreasonable Royalties," on Wednesday, 5 June 2002 at the 21 Club in New York City. Dr. Lauren J. Stiroh gave a presentation on "Unreasonable Royalties" that drew on NERA's work in connection with Bayer AG v. Sony Electronics Inc., Sony Corporation, Inc. and Dowa Mining Co. NERA was called upon to determine a reasonable royalty for a patent relating to technology used in metal particle recording tape. Dr. Stiroh used this example to demonstrate what makes a royalty reasonable. She concluded that a royalty is reasonable if it is market-based, considers the value of the patent to both parties in a negotiation, and takes into account the cost and availability of non-infringing alternatives.