Where a contract specified that failure of performance would require the contracting party to pay royalties for the license, damages should be calculated as royalties and not as lost profits. The 7th U.S. Circuit Court of Appeals affirmed a decision by U.S. District Judge Colin Stirling Bruce, Central District of Illinois. Whirlpool purchased injection-molded plastic knobs and decorative metal stampings from Grigoleit. In 1992, Whirlpool decided that it would replace Grigoleit’s products with those made by …