Lost profits, patent infringement

In Rite-Hite v. Kelley (203), the Court of Appeals for the Federal Circuit held that lost profits on unpatented products that directly compete with the infringing product are recoverable if the lost sales were reasonably foreseeable. The patentee in Rite-Hite made a product covered by its patent and a higher priced unit that was not covered. The allegedly infringing product was intended to compete with the unpatented unit. The Federal Circuit held that the patentee was entitled to recover profits it lost on diverted sales of the unpatented unit as compensationforthe infringement. 

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