Patent Litigation Cost

Typical costs:

• According to survey data from the American Intellectual Property Law Association[1] (AIPLA), when attorneys from major metropolitan cities work on patent cases where the plaintiff is seeking damages of $25 million or less, total litigation costs run $600,000-$2 million for cases settled before going to trial, and $1.2 million -$3.5 million if they go through trial and appeal. For cases involving more than $25 million the AIPLA says pretrial litigation costs are $1.4 million -$4 million and jump to $2.5 million -$6 million if the cases go through trial and appeal. In cases that goes to trial, the judge has the option to order the losing party to pay the winning party's legal fees, but only in exceptional circumstances (such as fraud or bad faith). Going to trial is rare in patent litigation; less than 5 percent of cases go to trial.
• Traditionally, patent attorneys accept patent litigation cases strictly on an hourly basis, at $100-$500 an hour, and costs quickly skyrocket. More recently some attorneys have accepted patent litigation on contingency, where the lawyer earns one-third to one-half of any settlement or court judgment (the longer and more complex the case, the higher the percentage paid to the attorney -- especially if it goes to trial). Any expenses such as expert witnesses and court costs are also reimbursed out of the settlement/judgment. In this case, you do not owe any legal or other fees if you do not win the case.
• More often than straight contingency, an attorney may accept a patent litigation case on a partial hourly/partial contingency basis with the client paying court costs and other agreed-upon fees as they occur. Whether you're paying on an hourly or partial-contingency basis, usually you will be required to pay the attorney an advance fee known as a retainer. As costs occur they're deducted from the retainer; when the fund is exhausted you will be billed for an additional payment. In some cases, the retainer fee may be nonrefundable even if total costs don't go that high.
• If you've received a letter alleging that you've guilty of patent infringement because you're selling a certain product, according to the National Federation of Independent Business (NFIB) you can usually pay an attorney $5,000-$10,000 for a verbal opinion as to whether the product infringes on the patent, and if the attorney says you do not infringe the patent, pay another $5,000-$10,000 for a written opinion. Costs can be even higher if the case is complex. The NFIB also estimates that having a patent attorney evaluate the validity of the disputed patent could run $10,000-$15,000, with another $5,000-$10,000 to draft that evaluation in written form.

• Patent litigation is almost always complex, highly technical and time-consuming. Plaintiffs will charge that the defendants should be legally stopped from infringing their legitimate patent, and often the defendants will argue that the patent should be ruled invalid.
• After a claim is filed and a litigation schedule set, the exchange of documents and information in the process known as discovery can last 9 months to a year or more -- and there's a risk that as part of this process, proprietary and confidential information may become public. TechnologyReview.com summarizes the patent litigation process[2] and Fenwick & West LLP, a national law firm, provides a more detailed introduction[3] to patent litigation.
• An international law firm explains how to survive US patent litigation[4] from an international perspective.

• Patents are a form of intellectual property, and litigation often requires specialized skills. Ask about the attorney's training and experience, and whether he or she has a college degree in science, engineering or a related field. Lawyers.com explains what to do in a first meeting[5] with an intellectual property lawyers, and lists 12 general questions[6] to ask any potential lawyer.
• Referrals to intellectual property attorneys are available from FindLaw.com[7] and Lawyers.com[8] .
• Your lawyer should provide you with a written fee agreement. Be sure you understand if your legal fees are on an hourly, contingency or partial contingency basis, and what other costs you might have to pay.

1.  www.aipla.org/Pages/default.aspx
2.  www.technologyreview.com/news/402686/patent-litigation-the-sport-of-kings/
3.  www.fenwick.com/publications/pages/legal-faq-introduction-to-patent-litigation.aspx
4.  www.fulbright.com/images/publications/AndersonHowToSurvive.pdf
5.  intellectual-property.lawyers.com/Intellectual-Property-Meeting-with-a-Lawyer.html
6.  research.lawyers.com/12-Questions-To-Ask-Your-Potential-Lawyer.html
7.  lawyers.findlaw.com/lawyer/practice/Intellectual-Property-Law
8.  www.lawyers.com/intellectual-property/find-law-firms-by-location/

Check Out All Costs for Small Business		How Much Does an Event Photographer Cost?		How Much Does a Security Guard Cost?		How Much Does a Business Sale Attorney Cost?

Today's Featured Cost Articles

April is craft month. We have the cost of scrapbooking and other crafts. Looking for help to take care of your garden? How much does garden service cost. If you want a spring or summer wedding, now is the time to pin down the location. A BBQ grill could be handy to enjoy backyard activities during the summer months. Spring has sprung. Are you thinking about allergy shots?

About CostHelper

CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.

CostHelper Community

Didn't hurt the pocketbook Paid: 43.00 I called my dentist because my tooth had been hurting for a week and a half. I couldn't eat or sleep. It was horrible. They got me in the next day. The dental surgeon and staff took x-rays, verified that it indeed needed to come out... [more] -Anxious in Augusta Tooth Extraction Cost Current cost of skirting job 2022 Paid: 2356.00 Purchased material @ mobile home supply store Front/back top trim & ground track 17 each [email protected]$9= $459. 48 [email protected]$17= $816. [email protected]$40 [email protected] $20 tax $121. Total material $1456. 3 guys total $75 hour labor at 12 hours $900 labor... [more] -Fayard siding Mobile Home Skirting Cost Alatel joy tab2 Paid: 108.00 Cracked screen... [more] -Shawn P Speers Tablet Repair Cost Replace 2baths, laundry, and kitchen to the street Paid: 20000.00 Numerous breaks in 90 year old cast iron and also in the clay pipe. replaced with 4" schedule 40 ABS to the curb and then liner in the clay pipe to the city sewer... [more] -Steve in 2022 Sewer Line Replacement Cost Full mouth -Is this estimate too much? Paid: 16945.00 Extract buttom front teeth, replace with single implant for both teeth. Root canals and crowns needed for 3 molars, fillings needed on 11 teeth. Deep cleaning with 4 spots of Arestin and fluoride treatment. All under IV sedation... [more] -Shanmarspag Dental Work Cost Lockout at front door Paid: 175.00 I was quoted $29 for a service call. The techniciandidn't give me a price but went ahead with the repair. It took about 10 minutes. Then he told me the charge was because the owner of the business gets most of the money I paid... [more] -Carla Axelrod Locksmith Cost