The suit resulted in a billion dollar debacle for Kodak. In a recently celebrated business methods case, Signature Financial Services blocked State Street Bank from enjoying a very efficient and profitable business. Sound business practice dictates that management move to reduce the potential for business loss and to increase profit. A patent holder can prevent its competitor from using a claimed method, as did Signature Financial. A larger interest concerns the monetary loss that flows from a judgment of infringement.
Courts assess infringement damage according to a royalty based upon the use of an infringed patent.
In a process covering a finance system, the number of transactions and their accumulated monetary value can arguably form the basis for damages, which for even large financial service companies, might be staggering. Companies obtain value from the competitive advantage and efficiencies that flow from sound innovative efforts. A valid patent provides assurance against preclusion from a new business segment or the exercise of its traditional business in a novel way. The process of obtaining a patent requires the patent attorney and the patent office to search the technology databases for any equivalent or obvious method that may exist reducing uncertainties. In addition to the objective result obtained from a product development effort, a patent provides senior management with a record of and tangible indicia of the efforts of many dollars expended in project development.