Account of profits - intellectual property law
When intellectual property rights have been infringed, the IP rights holder may seek compensation, otherwise known as 'damages'. Reputational damage and unpaid licence fees are part of the calculation when accessing how much to compensate a claimant. Account of profits refers to the assessment the assessment that is made of the profit gained by the defendant as a direct result of the infringement.
This will normally involve the defendant's accounting records being examined (sometimes by a forensic accountant) to determine what portion of their gross profits were derived to the wrongful act in question.
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