THE RELIANCE INTEREST IN INTELLECTUAL PROPERTY LAW

This Article revisits the foundational principles of intellectual property law by introducing the reliance interest as a crucial, yet underexplored, component. Drawing inspiration from Fuller and Perdue's seminal work on contract law, we argue that the reliance interest, which compensates creators for their investment in developing intellectual property, should be a primary focus in intellectual property law. This perspective challenges the current dominance of the expectation interest, which focuses on lost profits, and the restitution interest, which aims to disgorge unjust gains. By proposing reliance-based recovery, we offer a practical solution to the measurement of damages and a balanced approach to resolving "hard cases" where existing remedies either overburden defendants or fail to adequately compensate plaintiffs. This new framework not only aligns more closely with the core goals of intellectual property law—encouraging innovation and protecting investments—but also provides a fairer, more predictable legal remedy for infringements. Our analysis seeks to reshape the conceptual foundation of intellectual property law, advocating for a shift towards recognizing and protecting the reliance interest to enhance the legal and economic landscape for creators and innovators.