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IP infringement: Accounting of profits, pre-judgment interest and taxation

Monday, November 27, 2017 @ 9:42 AM | By Ephraim Stulberg

Unlike in many other areas of law, in intellectual property infringement cases where the award is an accounting of the defendant’s profits courts have generally granted pre-judgment interest (PJI) a) at rates that are higher than those generally prescribed by statute, and b) on a compound (not simple) basis.

One issue raised that has been raised by defendant’s counsel in at least two recent cases is that to award the plaintiff compound interest would result in overpayment due to “tax effects.” Thus we find the following...