June 14, 2012—In the latest issue of LES Insights, a publication of the Licensing Executives Society, Nathan Associates’ experts and affiliates argue for the admission of settlement license agreements, or SLAs, in damages estimation. They present a “licensing negotiations continuum” to highlight what factors experts should consider in using SLAs and a model for analyzing factors in estimating damages.
One of the main objections to admitting SLAs is the influence of the cost of litigation on those agreements. The model presented, here, however, shows that those costs can often be accounted for and that SLAs can provide information important to reaching a reasonable royalty conclusion.
The authors of the article are Stephen J. Conroy, professor at the University of San Diego’s School of Business Administration; Robert Knudsen, vice president at Nathan Associates; and Russell Mangum, senior vice president at Nathan Associates.