Analyzing and Predicting Factors in Patent Litigation Outcomes And Their Important Role

No matter whether you are a defendant or a plaintiff involved in patent litigation, you may naturally want to know potential outcome of the litigation. Well, a plaintiff can be either any individual or a small business, while defendant is often large corporation having virtually unlimited resources. While entering patent litigation, having a valid patent as well as strong claim isn’t just enough.

The case will likely be won by the side knowing exactly what it is doing and has experience and resources to pursue litigation to successful resolution. Patent litigation may have numerous outcomes. Let we get a brief idea about them in the following section.

Several outcomes of Patent Litigation

  • Monetary damages

A patent owner is entitled to recover the damages done by infringer. In case the patent owner practices patented invention, it can be entitled to get the lost profits that would have been made from patent. The patent owner is normally entitled to receive at least royalties from infringer for use of patent.

  • Injunctive relief

As a part of patent litigation strategy, one may secure an injunction by ordering patent infringer to stop the production or sale of infringing product that uses patent. While it may put halt to illegal use of patent, it doesn’t offer compensation to patent owners.

  • Exclusion Order

This approach can be chosen if patent infringer is foreign entity. It is almost similar to permanent injunction since it prohibits patent infringer from importing the products using infringed patent. Just like injunction order, this order too doesn’t compensate patent owner for damages.

  • Negotiated Settlement

If patent owner has well financed and skilled firm that manages the litigation, they may be able to avoid trial and negotiate settlement that can involve licensing arrangement under which patent owner gets paid a royalty for their patent. This kind of arrangement may also involve retroactive payments for prior use of patent.

  • Mediation

The skilled plaintiff may succeed in forcing defendant to agree to use mediator. This overall process may lead to settlement of patent litigation. It avoids subsequent appeals and trials of verdict by defendant.

Key indicators for Prediction of litigation outcomes

The world of litigation is truly uncertain. Only the best patent litigation lawyers can help you understand different outcome in depth and suggest you best ways to win your case. However, there are certain key indicators that are explained in brief as follows.

  • Time to closure

It should be remembered that not all the district courts are patent-owner friendly. In some of the jurisdictions, the typical lawsuit generally goes to trial stage and may get closed in a year. These delays can also impact other factors such as cost to run the case, market value of patent that is litigated, and much more.

  • Outcomes within the Industry

Many studies show the outcomes trends by the industries. For instance, the outcomes of the patent litigation may vary from one industry to other.

There have been evolved many sophisticated algorithms that can compute outcome of any infringement case. However, the above indicators can form a basis of computation.