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For years, many trial courts have relied on the 25 percent rule of thumb, which calls for a 25 percent royalty rate in calculating patent infringement damages in cases such as Uniloc v. Microsoft, in which one party (in this case Microsoft) is accused of using a patented device as a component in one of its products. Calling the rule “fundamentally flawed,” the Federal Circuit put an end to its use with the Jan. 4 ruling in Uniloc v. Microsoft.

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