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Economic Damages

Economic Damages

The principle of calculating economic damages is really quite simple: It is a calculation of the future income stream that has been gained from the damaged party, which is then discounted back to a present value.  In litigation involving future economic damages, calculations of these damage amounts that are discounted back to present value can be subject to a wide range of discount rates.  Because the courts have offered little guidance, and because each industry and situation reflects different discount rates, there is a wide range of possible answers.  Our methodology deals with the future uncertainties of damages by carefully analyzing both the industry and marketplaces in which the damages would take place, as well as the core value of the underlying intellectual property being damaged.  In other words, discount rate is a function not only of the future market, but also the quality and competitive environment in which the IP finds itself.

Clients:  AIG, Sephora, Allman Brothers, Karen Neuburger, Ameriquest, Ken`s Steakhouse, Amazon.com, Discovery Comunications, Inc.

Related Article:  "A New and More Effective Technique to Prove Confusion and Damages in Trademark Litigation"