License analogy

License analogy is a method of computing damages to be paid by the infringer in case of trademark infringement.

Anyone intentionally or negligently committing trademark infringement is obligated to compensate the owner of the trademark for the damage caused by the infringing act.
Since it is difficult to compute the actual loss of profit in individual cases, the infringed party may choose between three alternatives as to how the damage incurred is to be compensated. On the one hand, the specific lost profit may be computed or estimated by the court to the extent possible. There is also the option of either claiming the amount that could have been claimed from the infringer as a license fee in the case of licensing (license analogy) or of claiming the profit made by the infringer by way of the trademark infringement (skimming off the infringer’s profit).