Exit Strategies For Cybersecurity Patent Lawsuits

An exit for a cybersecurity startup is usually a good thing—a lucrative event.  Exits in cybersecurity patent litigation are also good, but for the opposite reason—saving cost.

Patent suits are costly to defend.  Beyond just legal fees, the burden on employees, the strains on customer relationships, and the reputational risks are all potentially significant.  Litigation in the United States is expensive because the legal system here is designed to resolve cases through jury trials after months or even years of discovery.  Accordingly, for a cybersecurity company finding itself dragged into U.S. court, terminating the case before significant costs arise is always desirable.  While there is no one-size-fits-all solution for every case, certain tactics optimize the chances of ending a patent case in its early stages.