The Limited Role of Analytical Approach to Reasonable Royalty

Thu Apr 13 13:54:15 EDT 2017
Dr. Alan Cox

In the Law360 article, "The Limited Role of Analytical Approach To Reasonable Royalty," NERA Managing Director and Chair of the firm's global Intellectual Property Practice, Dr. Alan Cox, offers a rebuttal to an article, also published in Law360, titled, "Determining Reasonable Royalties With Analytical Approach."

In his article, Dr. Cox offers a detailed counterargument, explaining that the analytical approach is inappropriate for the valuation of intellectual property and that it is especially ill-suited for complex products. He concludes that the analytical approach will not provide an accurate measure of the value of an individual patent since it often does not account for all of the costs of offering products that incorpoate the technology and does not provide for apportioniment between contributions made by patent and nonpatented elements of a product.