Market-Share Theory Law and Legal Definition
In terms of Antitrust law, market-share theory is a method of ascertaining damages for lost profits by calculating the impact of the defendant's violation on the plaintiff's output or market share. In the context of Patent law, this is a theory of lost-profits remedy offered when the patentee and the infringer share the market with a non-infringing competitor. The court assumes by using this method that the percentage of the market held by the patentee is the same as the percentage of the infringer's market that the patentee would have captured but for the infringement.
