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31 Santa Clara Computer & High Tech. L. J. 427 (2015)
Keeping up with the Game: The Use of the Nash Bargaining Solution in Patent Infringement Cases

handle is hein.journals/sccj31 and id is 447 raw text is: KEEPING UP WITH THE GAME: THE USE OF THE NASH BARGAINING SOLUTION IN PATENT INFRINGEMENT CASES Lance Wyattt Determining damages is an integral stage in the patent litigation process. Since 1970, reasonable royalty damages have been calculated using the factors set forth in the seminal decision Georgia-Pacific Corp. v. United States Plywood Corp. However, these factors are prone to manipulation and abuse by damages experts. To address this abuse, damages experts have utilized a solution to a two-person bargaining situation, the Nash Bargaining Solution (NBS), as a method to calculate reasonable royalty damages in patent infringement cases. Since the introduction ofNBS in patent infringement cases, courts have been reluctant to admit the use of the NBS to calculate reasonable royalty damages because damages experts often fail to apply the specific facts ofthe case to their calculations or adequately explain the NBS. This article argues that courts should allow the use of the NBS by damages experts as a viable method to calculate a reasonable royalty in patent infringement cases, despite recent backlash at the Federal Circuit Court ofAppeals. First, the NBS, ifproperly used, adequately applies the facts of each specific case to its analysis. Second, the NBS is grounded in sound, unmanipulable economic theory that can be adequately explained Finally, the NBS is more impartial than the Georgia-Pacific analysis. f J.D., 2014, SMU Dedman School of Law; B.S. Biomedical Engineering, 2011, Texas A&M University. The author is currently clerking as a judicial law clerk for a district judge in the United States District Court for the District of Nevada. The author dedicates this article to his mother, Marcy Boyd Rhodes. The author also dedicates this article to John Nash, who passed away in a tragic car accident shortly before its publication, and whose pioneering research in game theory provides the basis for this article. 427

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