Appendix J The Georgia-Pacifi c Reasonable Royalty Factors Applicable by Analogy to Trade Secret Cases

• Pages: 297-298

APPENDIX J

The Georgia-Pacific Reasonable

Royalty Factors Applicable by

Analogy to Trade Secret Cases

1. The royalties received by the plaintiff for the licensing of the

trade secrets to others, which may prove an established royalty;

2. The rates paid by the defendant for the use of other trade

secrets comparable to the trade secret in suit;

3. The nature and scope of the license, as exclusive or non-

exclu sive, or as restr icted or non-rest ricte d in ter ms of ter ritory

or with respect to whom the manufactured product may be

sold;

4. The plaintiff’s established policy and marketing program to

maintain its trade secret by not licensing others to use the

invention or by granting licenses under special conditions

designed to preserve the trade secret;

5. The commercial relationship between the plaintiff and defen-

dant, such as, whether they are competitors in the same terri-

tory in the same line of business, or whether they are inventor

and promoter;

6. The effect of selling the trade secret product in promoting

sales of other products of the defendant, the existing value of

the trade secret to the plaintiff as a generator of sales of its

non-trade secret items and the extent of such derivative or con-

nected or conveyed sales;

7. The duration of the trade secret and the term of the license;

8. The established profitability of the product made with the

trade secret, its commercial success and its current popularity;

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