                                 CODE OF VIRGINIA

LICENSEE&#8217;S DAMAGES (§ 59.1-508.9)

a. Subject to subsection (b) and except as otherwise provided in § 59.1-508.7,
a breach of contract by a licensor entitles the licensee to recover the
following compensation for losses resulting in the ordinary course from the
breach or, if appropriate, as to the whole contract, less expenses avoided as a
result of the breach to the extent not otherwise accounted for under this
section:

   1. damages measured in any combination of the following ways, but not to
   exceed the market value of the performance that was the subject of the breach
   plus restitution of any amounts paid for performance not received and not
   accounted for within the indicated recovery:

A. with respect to performance that has been accepted and the acceptance not
rightfully revoked, the value of the performance required less the value of the
performance accepted as of the time and place of acceptance;

B. with respect to performance that has not been rendered or that was rightfully
refused or acceptance of which was rightfully revoked:

i. the amount of any payments made and the value of other consideration given to
the licensor with respect to that performance and not previously returned to the
licensee;

   ii. the market value of the performance less the contract fee for that
   performance; or

   iii. the cost of a commercially reasonable substitute transaction less the
   contract fee under the breached contract, if the substitute transaction was
   entered into by the licensee in good faith and without unreasonable delay for
   substantially similar information with the same contractual use terms; or

C. damages calculated in any reasonable manner; and

   2. incidental and consequential damages.

b. The amount of damages must be reduced by any unpaid contract fees for
performance by the licensor which has been accepted by the licensee and as to
which the acceptance has not been rightfully revoked.

HISTORY: 2000, cc. 101, 996.