Budgeting for IP Cases is Critical and Challenging:The Client´s Role

Budgeting is a regular and important part of any business activity. The same is true with litigation of any kind, and IP litigation in particular. This article briefly discusses some basics of IP litigation budgeting and what a client can do to make IP litigation budgets more accurate and reliable.

First, what is a budget? For IP litigation purposes, it is an estimated projection of client expense for legal fees and other expenses in out-of-pocket dollars and over time. Budgets can be for an entire case, a case task, or a calendar period. Law firm generated IP legal budgets do not normally include non-cash costs to the client such as opportunity costs for executive distraction, possible negative impact of the case on the marketplace, and the like. Non-cash costs in IP litigation can be very high — the same or more than cash expense — and should be considered by the client with counsel.