Technology: The new patent opposition proceedings – IPR and PGR

Tech companies have seen success using patent re-examinations as leverage to reduce the threat of building a reputation of paying out

Tech firms are often confronted by nonpracticing entities (NPEs) that threaten them with dubious patents in hopes of reaching quick “cost of defense” type settlements. Because NPEs (by definition) do not practice the patents themselves—or even offer any product beyond a license to their patents—discovery and all its costs are essentially a one-way street. 

Settling with NPEs is both tempting and dangerous. Settlement is tempting because it eliminates disruptions to the business, provides certainty and is often less costly than hiring expensive attorneys to defend you. Even if you feel that the patents are absolutely invalid, often the time and expense in proving them invalid is difficult to justify. On the other hand, settle for too much and too often and you could find your company developing a reputation of paying out.

Contributing Author

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Gregory Novak

Gregory V. Novak is the Chief Executive Officer and Managing Partner of Novak Druce Connolly Bove + Quigg. Mr. Novak serves as national intellectual...

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Contributing Author

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Aaron M. Levine

Aaron M. Levine is a partner in the Litigation and Patent Reexaminations Group and Co-Chair of Novak Druce Connolly Bove + Quigg LLP’s New...

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