Munich Innovation Group is a leading service provider for patent monetization and
IP advisory services.
What is a Patent Litigation?
A patent litigation suit is filed when the patent owner and the alleged infringer cannot agree to enter into a licensing agreement or if the patent owner is not willing to share his technology at all. Patent litigation suits are typically very costly, especially in the US, can last for many years and may cause expenses of millions of dollars.
Possible outcomes to patent litigations
By the time, a final court decision has been reached, the window of opportunity could have closed for the patent owner.
Given the high costs to defend a patent, patent litigation is not necessarily the right option for smaller businesses or individual patent owners. And by the time, a final court decision has been reached, the technology may have changed and the window of opportunity could have closed for the patent owner.
Typically this will happen:
- Monetary Damages: The party accused for patent infringement is sentenced in court and compensates the patent owner. Such compensations include the patent owner being entitled lost profits and/or royalties from the infringer.
- Exclusion Order: If the case is taken to the International Trade Commission they might issue an exclusion order. This is the same as a permanent injunction that forbids the patent infringer from importing the product that uses the infringed technology into the markets covered by the patent.
- Mediation: Using a mediator to settle the litigation outside of the courtroom and to avoid a potentially long and costly trial.
- Negotiated Settlement: If the patent owner has support from an experienced and well-financed firm it might be able to avoid going to trial and negotiate a settlement with the infringer. This settlement usually includes a licensing agreement between the parties. Most infringement cases are settled like this.
- Injunctive Relief: The infringing party is forced to cease production and/or sale of the infringing product or service. This does not provide the patent owner with any compensation, but it puts pressure on the infringing company.
Seek the Appropriate Partners for your Patent Litigation
It is important to choose your partners and strategy wisely when you intend to fight for your rights.
Due to how demanding a patent litigation is, it is important to choose your partners and strategy wisely, both if you are being accused for infringement and own a patent that is part of an infringement case. Also, the venue of such a law suit can be of crucial importance as other jurisdictions, like e.g. Germany may offer a cheaper and faster legal system for patent litigation suits.
Munich Innovation Group, a leading service provider for intellectual property, offers consulting and expert insight for companies preparing a sound commercial solution.
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