August 7, 2019 - Intellectual Property, Litigation

Preparing for the Increased Globalization of IP Litigation

Morrison & Foerster surveyed intellectual property decision-makers from more than 50 companies with revenues greater than $750 million each. The study showed that, while intellectual-property litigation has decreased by 26% since 2015, the amount that companies spend on intellectual-property litigation is higher than ever. Morrison & Foerster’s Benchmarking IP Litigation 2019 report offers important insights into this change and a list of questions that companies will want to ask themselves in the face of increased IP litigation spending.

IP litigation spend has increased to $3.3 billion from $1.7 billion in 2005. That uptick is due to several factors, including the larger damage awards that typically result from patent-infringement lawsuits asserting multiple claims. These multi-claim, patent-infringement suits have become popular because they decrease the risk of an entire patent-infringement suit being dismissed.

The globalization of markets and supply chains is also playing a part in the amount companies are spending on IP litigation. Because patent disputes like the smartphone patent wars are increasingly likely to play out around the world, companies must locate and hire counsel in multiple jurisdictions to develop cross-market strategies.

Navigating multinational laws and judicial systems is becoming even more necessary as an increasing number of IP litigants file overseas in countries including China, which is known for the speed of its dispute-resolution processes and its available injunctive remedies.

For a list of questions that can help your company prepare for the globalization of patent litigation and mitigate risks inherent in the higher cost of litigating patent cases, read the study that Morrison & Foerster commissioned: Benchmarking IP Litigation 2019.