Turn - Patent litigation lawsuits involving universities last longer
Ryan, et al, Professor of Law at the Indiana University Maurer School of Law, 2024
[Christopher J. Jr., et al. "The Hidden Cost of University Patents." Berkeley Business Law Journal, vol. 21, no. 1, 2024, pp. 203-249. HeinOnline -tm]
Such lawsuits represent considerable monetary outlays borne by universities-in terms of attorneys' fees and other costs associated with litigation-all in the pursuit of revenue generation. Of course, this is not to say that all infringement lawsuits are illegitimate, but many are motivated by the pursuit of revenue to recoup the cost of research and development investment. And whether or not universities win these suits, they impose costs in terms of time. On average, patent assertion lawsuits involving production companies take 443 days until termination.83 Yet, patent assertion lawsuits involving universities or the government take an average of 604 days to terminate-the longest time to termination for any litigant group studied.84
With the passage of each week in litigation, the cost associated with litigation only grows. Universities, wary of terminating patent assertion lawsuits in lockstep with other litigant groups, ultimately face not only costs of time and money, but also a reputational hazard. It takes universities further afield of their educational and research missions towards potentially fruitless pursuits.85 That is, universities respond to modem business realities of the litigation process in ways that not even producers in the patent sector do, revealing not only their preference for revenue extraction but also for deadweight loss expended on the same.