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The Benefits Of A Patent Litigation Contingency Fee Agreement

By Lena Stephenson


A patent is a restricted and a publicly recognized right to use a certain kind of invention. Infringement occurs if someone else other than the person who owns the patented invention uses, makes or sells it. Patent litigation is the lawsuit, which arises from a patent infringement dispute.

A person can only win a patent infringement case if he or she proves that the offending party used a patented idea or technology without permission. The defendant may then try to demonstrate that the patent is either unenforceable, invalid or has not been infringed on. The fees that attorneys charge to represent individuals or companies that are filing such cases are usually high. In order to reduce these expenses, a plaintiff can take advantage of a patent litigation contingency fee arrangement.

If you opt for a contingency fee agreement, you can pay lower out of pocket expenses. This agreement does away with lawyer fees. However, you will still be responsible for meeting the costs of litigation. These include filing fees and the costs associated with transcripts, depositions, travel and compensating expert witnesses.

A contingency fee agreement can also give you the best opportunity to file a lawsuit that may have been too expensive to file. This arrangement also helps lower the risk of litigation. You will only pay an intellectual property attorney if the outcome is good. In this arrangement, the attorney will also have the incentive to settle your case if settling it is beneficial for you.

As an intellectual property infringement case is progressing, the offender and his or her attorney can offer to settle the case by paying a settlement amount that is lower than the amount a plaintiff is seeking. If a weakness has appeared in the lawsuit, a lawyer can advise the plaintiff to consider settlement. Nevertheless, if the lawyer is confident of a good outcome, he or she can advise the client to wait for the case to be tried because a larger settlement amount will also benefit him or her.

If a lawyer is working on a contingency fee basis, he or she will also try to make the litigation process less time consuming and more cost effective. Law firms that bill clients on an hourly basis, often conduct many lengthy depositions, send several lawyers to hearings and conferences and prepare long pleadings. This usually increases the number of billable hours. Thankfully, this does not happen in contingent fee cases.

When you hire an intellectual property lawyer, he or she will evaluate your case carefully to determine if the settlement amount is likely to be high. If your case is weak, has many issues or it lacks credibility, the lawyer may decline to take it. If a lawyer takes your case, it means that he or she is confident about getting a winning outcome after investing adequate effort.

Assisting your lawyer whenever possible is a good way to raise the chances of winning a case. It is advisable to provide the lawyer with the information he or she asks for fast. Having a good relationship with a lawyer as you file an intellectual property lawsuit is very important because the two of you will benefit if you win.




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