{"id":24068,"date":"2019-12-09T12:00:57","date_gmt":"2019-12-09T03:00:57","guid":{"rendered":"https:\/\/www.ryuka.com\/en\/?p=24068"},"modified":"2021-10-07T15:37:17","modified_gmt":"2021-10-07T06:37:17","slug":"ip-high-court-admitted-1-3-million-damage-compensation-as-equivalent-to-license-fee","status":"publish","type":"post","link":"https:\/\/www.ryuka.com\/cn\/news\/ip-news\/patents\/24068","title":{"rendered":"IP High Court Admitted $1.3 Million Damage Compensation as Equivalent to License Fee"},"content":{"rendered":"<div class=\"text-right\">\n<div style=\"line-height: 1.2em\">Aki Ryuka<br \/>\n<small>Japanese Patent Attorney, Japan<br \/>Attorney at law, California, USA<\/small><\/div>\n<\/div>\n<p><\/p>\n<p><font size=\"4\"><b>Overview<\/b><\/font><br \/>\n<b>Koei<\/b> Tecmo Games Co., Ltd. has been sued for infringing <b>CAPCOM<\/b> Co., Ltd\u2019s patents in their game series, such as \u201cSengoku Musou (Samurai Warriors)\u201d and \u201dShin Sangoku Musou (Dynasty Warriors 2).\u201d  The IP High Court admitted that <b>Koei<\/b> should pay 144 million Japanese yen (about US$ 1.3 M) of damage compensation to <b>CAPCOM,<\/b> mainly as equivalent to the license fee. [September 11, 2019, IP High Court]<br \/>\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.ryuka.com\/cn\/wp\/wp-content\/uploads\/IP-High-Court-Admitted-US-1.3-M-Damages-as-Reasonable-Royalty.png\" alt=\"\" width=\"140\" height=\"121\" class=\"alignright size-full wp-image-24964\" \/><br \/>\n<font size=\"4\"><b>Key Points of the Decision<\/b><\/font><br \/>\nIn principle, the damage compensation equivalent to the license fee<br \/>\n(Japan Patent Act Art. 102(3)) is calculated as:<\/p>\n<p>\u3000\u3000\u3000<b><i>Sales of the infringing product x <u>License rate<\/u><\/i><\/b><\/p>\n<p>In deciding <u>the license rate<\/u>, the Court considered whether the patentee and the infringer are competitors and admitted that <b>the license rate should be no less than 3.0%. In comparison, the average rate was 2.5% in the industry because <u>the license rate should be higher than the average if it is determined after the infringement.<\/u><\/b><\/p>\n<p>\u261e\u3000Japan Patent, Utility Model, Design, and Trademark Acts were amended in 2020 to adopt this calculation.<br \/>\n<br \/>\n<font size=\"4\"><b>RYUKA\u2019s Suggestions<\/b><\/font><br \/>\nInfringing patents now have a greater risk because the damage compensation is higher. Therefore, <b><u>preliminary searches<\/u><\/b> are more important. It will also be essential to <b><u>obtain patents that enable you to cross-license<\/u><\/b> as a defense plan.<\/p>\n<p>The Court also looked into the contribution of the patented technology to the sales of the infringing product. The damage compensation could be calculated lower if you have obtained patents on the technologies of your products because the relative contribution of other company\u2019s patented technology in your product becomes smaller. In this aspect as well, we recommend <b><u>obtaining patents for your products<\/u>.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Aki Ryuka Japanese Patent Attorney, JapanAttorney at law, California, USA Overview Koei Tecmo Games Co., Ltd.  [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":"","_wp_rev_ctl_limit":""},"categories":[4],"tags":[],"class_list":["post-24068","post","type-post","status-publish","format-standard","hentry","category-patents"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.ryuka.com\/cn\/wp-json\/wp\/v2\/posts\/24068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ryuka.com\/cn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ryuka.com\/cn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ryuka.com\/cn\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ryuka.com\/cn\/wp-json\/wp\/v2\/comments?post=24068"}],"version-history":[{"count":3,"href":"https:\/\/www.ryuka.com\/cn\/wp-json\/wp\/v2\/posts\/24068\/revisions"}],"predecessor-version":[{"id":25143,"href":"https:\/\/www.ryuka.com\/cn\/wp-json\/wp\/v2\/posts\/24068\/revisions\/25143"}],"wp:attachment":[{"href":"https:\/\/www.ryuka.com\/cn\/wp-json\/wp\/v2\/media?parent=24068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ryuka.com\/cn\/wp-json\/wp\/v2\/categories?post=24068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ryuka.com\/cn\/wp-json\/wp\/v2\/tags?post=24068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}