On June 22, 2018, the U.S. Supreme Court in WesternGeco v. ION Geophysical ruled that a patent owner can recover lost foreign profits under certain circumstances.

WesternGeco may substantially expand the scope of potential damages for patent infringement under 35 U.S.C. §271(f)(2) when an infringer ships U.S.-made components of an invention for assembly abroad. WesternGeco is viewed as a win for patent owners who prove §271(f)(2) infringement. It remains to be seen whether courts will interpret WesternGeco as a signal that the scope of damages permitted for other types of patent infringement should be more expansive.

The ‘WesternGeco’ Decision