Patent Litigation Costs

Patent litigation costs average between $700K and $4M. This is from the AIPLA Economic Survey, assuming $25M at risk.

According to Morrison and Forester, over $3B (with a “B”) was spent on IP litigation in 2019. This is a staggering number.

Chart from Morrison and Forester’s “Benchmarking IP Litigation 2020”

In their report, Morrison and Forester say that the number of matters being litigated has dropped, but the cost per matter is rising. Their assessment is that the average case is costing $1.5M per matter.

How much does it cost to defend a patent?

“Defending a patent” is usually a layman’s way of saying “enforcing a patent” – you enforce your patent against a competitor who steals your invention. The cost to defend (enforce) your patent is typically between $700k-$4M.

Most patent-related cases will settle at some point during the litigation process. Very few will get all the way through – and those will almost always go up on appeal.

The patent litigation process has several big steps. In each step, both sides will learn more about each other’s case and start handicapping if they will win or lose. There are many reasons why either side might want to settle, but patent litigation is usually a big game of “chicken” to see who swerves first before the big crash.

In fact, 95-97% of all patent cases settle before final judgment.

There is insurance for Patent Litigation.

Patent enforcement and defense insurance protects you from costs associated with patent litigation. Patent enforcement policies give you the horsepower to assert your patent, and patent defense policies protect you from inbound litigation.

Patent insurance is affordable, giving you peace of mind to know that if a dreaded litigation ever occurs, you are protected.