Lost profits are the profits the patent holder would have made but for the defendant’s infringement of the patent. To recover lost profits, a patent holder must show its profit margin; market demand for the patented feature; the absence of non-infringing substitutes for the invention; and that it had capacity to meet the needs of the defendant’s customers. In a multi-player market, the patent holder can instead recover its lost profits as determined by applying its share of the market to the sales of the defendant. Additionally, depending on the sensitivity of the market to price competition, a patent holder may be able to recover an additional amount for any price erosion that occurred as a result of the infringer pushing prices down where the patent holder made the sale.