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ARTICLE · 30 OCTOBER 2009

IP In A Downturn

O'Melveny & Myers LLP
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Reports that the number of patent infringement lawsuits filed in the US in 2008 decreased by more than 8% from 2007 came as a surprise to some observers. Many view patent litigation as a practice that remains steady – or even thrives – during economic downturns.

United StatesIntellectual Property
Michael Myers
Michael Myers
Brett Williamson
Brett Williamson

Originally published by IP Review (Summer 2009)

Reports that the number of patent infringement lawsuits filed in the US in 2008 decreased by more than 8% from 2007 came as a surprise to some observers. Many view patent litigation as a practice that remains steady – or even thrives – during economic downturns. Conventional wisdom holds that when times are tight, companies look for ways to generate new revenue using existing assets. Since intellectual property (IP) is one of the most important categories of assets held by many businesses, it is natural that corporations looking for new sources of revenue may seek to monetise their existing IP assets – especially patents.

Short of selling off IP, companies can realise revenue from these intangible assets in only two ways: licensing rights in exchange for royalties or enforcing them through litigation. Rather than reducing the number of patent lawsuits, therefore, economic downturns generally result in increased patent

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