Re: lambertslunatics, "the first x amount of product infringment you pay $X, for the next y amount you pay $Y, etc"

Simple concept but how would you define "product infringement" ?

Suppose that product "A" buys/uses a component that has incorporated the patent. They don't really need the patent for what they are doing - it just happens to be in the commercial part they use. (They use the soap but don't need the added scent) They sell 10 million units a year for $2.50 cents each.

Now product "B" uses the same part but their gross margin is totally dependent on the incorporated patent to achieve it's competitive performance goals. (They need the scent to sell their product) They sell 10 million units a year at $25,000 each.

Should these 2 companies pay the same amount to license based on the fact that both sell 10 million units a year?