NDLI: On the 'Smallest Saleable Patent Practicing Unit' Doctrine: An Economic and Public Policy Analysis

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On the 'Smallest Saleable Patent Practicing Unit' Doctrine: An Economic and Public Policy Analysis

Content Provider	Scilit
Author	Sherry, Edward F. Teece, David
Copyright Year	2016
Description	Journal: SSRN Electronic Journal We discuss the recently developed court-originated legal doctrine that patent infringement damages should use as the damages base the selling price of the “smallest saleable patent practicing unit” (SSPPU). The doctrine appears to have been motivated by concerns that using a broader damages base risks overcompensating patent holders by basing damages on product features the patent holder did not invent. We note that very few real-world licenses use the SSPPU as the royalty base. We discuss a number of conceptual and pragmatic problems with the SSPPU doctrine, including concerns about the fact that the SSPPU may be a component that accounts for only a small fraction of the value of the overall infringing product. In a recent controversial change to its IP policy, the IEEE-SA recently endorsed basing royalties for standards-essential patents on the “smallest saleable compliant Implementation” of the relevant IEEE-SA standard. The most recent appellate court decision on the subject has rejected a categorical rule requiring the use of the SSPPU.
Related Links	http://businessinnovation.berkeley.edu/wp-content/uploads/businessinnovation-archive/documents/Tusher-Center-Working-Paper-11.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=2764614
ISSN	10914358
e-ISSN	15565068
DOI	10.2139/ssrn.2764614
Journal	SSRN Electronic Journal
Language	English
Publisher	Elsevier BV
Publisher Date	2016-01-20
Access Restriction	Open
Subject Keyword	Journal: SSRN Electronic Journal History and Philosophy of Science
Content Type	Text
Resource Type	Article
Subject	Public Health, Environmental and Occupational Health Psychiatry and Mental Health

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