Lead Time Advantage

Refers to the advantage the first mover in a market obtains, by for example, establishing its brand or standards first, making relationships with major distributors, etc. Loss of lead time advantage can be a factor in patent damages, particularly for infringements late in the life of patents. It is also used to justify ongoing running royalties for access to know-how or trade secrets, even after inevitable disclosure, when, for example, products incorporating the know-how are placed on sale.