Counting The True Cost Of A Nuisance Settlement

Law360, New York (August 28, 2008, 12:00 AM EDT) -- Companies defending against patent infringement charges are paying more money than ever to settle cases early on, even when they view them as virtually meritless, according to attorneys familiar with the issue.

There are no statistics on “nuisance-value” lawsuits, in which a litigant brings a tenuous claim or defense and then offers to settle the matter for less than it would cost to litigate. Anecdotal evidence suggests, however, that the amount of money in nuisance-value settlements and perhaps the total number of those settlements may be...
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