The Best Protection Against Litigation
Avoiding Patent Litigation
While PatentBooks offer a number of advantages to product manufacturers (Subscribers) and patent owners (Publishers), perhaps the greatest “bottom line” advantage, particularly for companies that are both potential Subscribers and Publishers, comes from the significant protection against patent infringement litigation. Such companies substantially reduce the costs, risks, and distractions of defensive patent infringement litigation by using a PatentBook as a critical element of a comprehensive product strategy.
The Increase in Patent Litigation
The costs of patent litigation, particularly in the US, have been rising steadily; this increase shows no signs of slowing. The American Intellectual Property Law Association 2009 Economic Survey showed that a single defendant in a case involving a single patent had legal costs of US$1.8 million through the discovery phase alone. The total cost for such a case (including outside counsel, travel, analytics, and expert witnesses) averaged $3.1 million — an increase of 20% over 2007 costs. The respondents in the survey also noted that these “hard” litigation costs are far less than the opportunity costs related to the time spent and the distraction from the company’s core business.
Even where no litigation is involved, the costs of a bilateral licensing transaction, in a single agreement covering from 1-20 patents, average between US$100-150,000 per patent, and the negotiations lasting some 18-36 months involve face-to-face negotiations in several locations around the world.
PatentBooks protect Subscribers from infringement lawsuits and offer far lower patent licensing costs.
The Increase in Patent Litigation
License all PatentBook patents only when a production unit actually sells.
Enjoy freedom from litigation for their shipped products from all published patents.
Enjoy “amnesty” from all Publishers for all prior use of PatentBook patents for as long as they remain Subscribers in good standing.
Demonstrate a good-faith effort to license the necessary patents and meet their obligations to pay for the intellectual property they use, which should substantially reduce damages in the event of litigation brought by non-Publishers.
Public Market Value
PatentBook patent evaluation criteria are open to the public. Our team uses the TAEUSworks™ Evaluation Criteria process to evaluate patents published to our PatentBooks. Once evaluated, each patent will be placed in one of three tiers based on the quality and quantity of patents.
These separate tiers will determine how much the Subscriber will pay to license the patents, as well as how much revenue will be distributed to the Publisher of the patent.
The market value of a patent not published to the PatentBook can be determined by evaluating the patent to determine its PatentBook Tier and relative compensation. This information, available to the public for the first time, will allow courts to establish a market value for a patent royalty based on the quality of the patent itself. Confronted with this information, non-Publishers are unlikely to obtain excess damages.
Saves Time and Money
Appreciate the precipitous decline in the number of lawsuits from non-Publishers. The existence of a PatentBook offers a patent owner the choice between pursuing time-consuming, costly, and risky litigation, or simply publishing their patents risk-free to the PatentBook. Even if a patent is exceptional, by paying a modest fee to have its evaluation validated for placement into a higher value tier, its compensation will be similar to that which it might have received via litigation, without the time, expense and risk. If you think your patent is exceptional, evaluate your patent with TAEUSworks, the patent evaluation gold standard to ensure optimum compensation for your patent.
Insurance Against Litigation
May purchase an optional insurance policy to cover exposure to litigation from all non-PatentBook patents. This insurance completes a Subscriber’s freedom to operate. The insurance company will have the responsibility for handling any covered litigation. Get in touch with our team to learn more.
Advantages of Using PatentBooks
Independent observers around the world see PatentBooks as a rational, cost-‐effective solution to the current patent licensing and litigation practices.
These observers will recognize and applaud the decision of companies that become the initial Publishers and Subscribers, generating considerable visibility and good-will to those “first movers” for their role in being pioneers in this effort to rationalize and improve the current patent marketplace for patent owners, manufacturers and retailers.