A sues B for patent infringement for making a product that infringes on A’s patent. A and B settle the case with B promising not to produce product. Typically, if money is being transferred between the parties, B pays A money for past damages caused by B for past acts of patent infringement. In the following case, the patentee (A) paid B money not to bring the product into … [Read more...]
Reverse payments are also known as pay for delay. Patent owners are allowed to pay competitors from entering a market. Money flows in the reverse direction compared to ordinary circumstances where a patent owner sues an infringer.
The typical payment in a patent litigation dispute flows from the alleged infringer to the patentee. The payment may represent damages incurred by the patentee to make the patentee whole and/or a licensing royalty fee if the patentee permits the alleged infringer to continue selling the patented product or method. The following case illustrates a “reverse payment” situation … [Read more...]