What is paid to a patent holder for lost profits due to infringement?

The compensation paid to a patent holder for lost profits due to infringement is known as legal compensation. This refers specifically to the financial restitution that a patent holder seeks in a legal context when they can demonstrate that their profits have been adversely affected by another party's unauthorized use of their patented invention.

Such legal compensation can include not only the lost profits that the patent holder would have made had the infringement not occurred but also any additional damages that the court deems appropriate. This concept is important in intellectual property law, as it provides a means for patent holders to seek justice and recovery for economic harm caused by infringement.

While license fees and royalty payments may involve compensation for use of a patent, these terms are generally associated with authorized agreements where the patent holder is willingly allowing use of their invention in exchange for payment. Legal compensation, in this instance, specifically addresses the harm and losses that arise from infringement actions without permission.