During 2010, a company spent $239,000 in research and development costs that res
ID: 2443726 • Letter: D
Question
During 2010, a company spent $239,000 in research and development costs that resulted in a new product introduced to the market in time for Christmas. In addition, the following costs were incurred in the filing of the patent for the new product:Attorney fees: $5,000
Patent office filing fee: $520
Internal company costs preparing the patent documents: $8,600
The patent was expected to have a useful life of 8 years.
In 2011, the company successfully defended a patent infringement lawsuit at a total cost of $15,000.
In 2012, the company determined that other products introduced into the market reduced the useful life of the patent and estimated that the patent would become worthless by the end of 2014.
how would I determine the amount of loss
Explanation / Answer
First we have to know what patent infringement lawsuit to understand the following calculations is:
If you believe a business has infringed on your patent you may be able to file a lawsuit to make them stop the infringement and recover financial compensation for the damage you have suffered. Under U.S. law an infringement may occur when the defendant has made, used, sold or imported the infringing invention or its equivalent.
SO it is a gain for patent holder so we add this amount and subtract from all fees
Attorney fees:…………………………………………………$5,000
Patent office filing fee:………………………………………… $520
Internal company costs preparing the patent documents: ...........$8,600
……………………
$14,120
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So patent infringement lawsuit at a total cost of $15,000 subtract fees $14,120 = $880
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