Question

Suppose that an innovation earns a monopolist innovator profits of $1 million if there was no infringement. If there was infringement, suppose that the innovator would earn $600,000, while the infringer earns $300,000. a. Under the lost profits protocol, how much compensation is the innovator entitled to? b. Under the unjust enrichments protocol, how much compensation is the innovator entitled to? c. In the United States, how much compensation is the innovator entitled to? d. What if the infringement was willful? Does this change your answer to part c? 10.

Consider the numbers from question 9. Let ? denote the probability that a non-willful infringer in the US is found to be infringing on an innovation. Suppose that by not infringing, the innovator can earn profits of $50,000 using its own technology. Also, suppose that fighting the infringement charge costs the innovator $100,000, regardless of the outcome. For what values of ? is there an incentive to infringe?

Answer 1

A.defining the important terms ,infringement means the breach of contract or abiding the terms of the contract and loss of profit is the term generally used when there is breach in the terms of patents or trademarks and some other cases

and here to explain innovater generally his innovation to the contracter,and receive the profits.so, under lost profits protocol,only lost net profits are allowed as damages,i.e., first we should caluclate gross revenue and then deduct the costs and determine the net profits.here in the given question we doesnot have any such information we treat total 1 million as net profits and the difference amount of $400000 will be treated as damages .

the compensation that innovater is entitled to will be $400000.

B.unjust enrichment protocal is the term which means that any person cannot get enriched with the damage of the other person .in this protocal damages would be the amount of the defendent gain or the amount of the person gained.i.e, in this case the defendent gained $300000, this is the amount that innovater gets .

c.according to us laws, the infringer has to pay the damages and the court fees and also penalities ranging from $200 to $150000 based on infringement.

d. generally ,willful infringement is rebuttable thing that no one will allow it ,if in case there is real willful infringement

for additional profits ,then both the parties will be punished with penalities and the infringer will be punished with additional penalities

10.this question asking us to find the probability of not doing infringement ,the value of p would be 0.5, that is 50000/100000