settlement in Patent infringement lawsuits that involve multiple defendants
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Aug 31, 2010 12:27PM
Patent infringement lawsuits that involve multiple defendants have become more prevalent over the decade. Plaintiffs choose to file suit against a number of defendants in the same case for a variety of reasons. Some choose this approach in an effort to try to reduce the plaintiffs’ costs of pursuing patent enforcement. Where patentees do not mark their products or require marking from their existing licensees, plaintiffs may want to pursue their rights simultaneously to reduce any potential loss of rights. By bringing all of the potential defendants into a single lawsuit, further potential loss of damages under the marking statute can be minimized.
In addition, plaintiffs want multiple defendants together in a single lawsuit in hopes that when one or more of the defendants settle, it will increase the pressure on other defendants to also settle to avoid being the “last man standing” in the case. They are particularly popular for patent-holding companies or small companies who want to enforce their patent rights against larger, well-funded defendants.
from,Brian M. Buroker, Esq.*
Hunton & Williams LLP