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Profits as Commercial Success |
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Andrew Blair-Stanek [View as PDF]
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117 Yale L.J. 642 (2008).
Courts often use the extent of a patented invention’s commercial success as
crucial nontechnical proof of the patent’s validity. Relying on misguided economic reasoning,
most courts use revenue as the primary yardstick for commercial success. This Note argues that
courts instead should use profits as the proper measure of an invention’s commercial success.
Current jurisprudence’s use of revenue reflects the flawed premise that firms maximize revenues
rather than maximizing profits. As a result, courts will often find commercial success when the
financial data suggest otherwise and vice versa. This Note finds the accounting and economic
issues involved to be insubstantial, while requiring a threshold profit showing could materially
further judicial economy.
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