If you are facing a potential dispute, one of the first questions that probably pops into your head is: “How much does intellectual property litigation cost?”
IP litigation has a reputation for being one of the more expensive areas of law. However, the actual cost will depend on the type of case, the stakes, and how quickly the conflict can be resolved.
Here is what goes into the price tag of intellectual property litigation and what you can realistically expect.
The Type of IP Dispute
The term “intellectual property” is a broad umbrella. Each type of case comes with its own cost structure.
Trademark Litigation
These cases involve arguments over brand names, logos, domain names, or unfair competition. Costs are influenced by:
- The similarities of the marks
- Whether consumer confusion is likely
- Whether the dispute involves a federal court
- How much discovery is required
For a standard federal trademark infringement dispute, businesses may see costs ranging from $60,000 to $200,000.
Copyright Litigation
Cases involving written works, software, photography, music, videos, or online content can escalate quickly. This can happen when proving ownership or actual copying is contested. Copyright cases can range from $30,000 to $150,000. Those higher costs occur when expert witnesses are needed to analyze the evidence.
Patent Litigation
Patent cases are highly technical, document-heavy, and expert-driven. Even smaller patent cases can reach six figures. Unfortunately, those complex disputes can reach $500,000 or more.
Trade Secret Litigation
These cases involve business insiders, former employees, or competitors accused of stealing proprietary knowledge. Once again, the costs vary based on how much digital forensics or expert analysis is required. Many times, they range from $75,000 to $300,000.
Remember, the more complicated the issue and the more extensive the evidence, the more time and money the case demands.
The Litigation Stage Also Affects Cost
Many people assume a case will automatically go to trial. However, most IP disputes settle. Keep in mind, the earlier they resolve, the lower the cost.
Early Case Evaluation or Pre-Litigation Negotiations
Sometimes, the dispute can be resolved with a cease-and-desist letter or negotiations between lawyers. This usually costs only a fraction of the price of full litigation.
Filing the Case
Once you file a lawsuit, costs begin to rise. Drafting complaints, responding to motions, and laying the groundwork for the case run into the tens of thousands.
Discovery Phase
This is where expenses tend to climb. Discovery includes:
- Depositions
- Document production
- Technical or financial experts
- Email and data review
- Third-party subpoenas
Discovery is one of the most expensive phases in any IP case. This is the stage that determines what evidence will be used at trial.
Expert Witnesses
If your case requires a marketing expert, an economist, or a technical expert, that will raise the costs. Experts can cost $5,000 to $50,000, depending on the field.
Trial
If your case reaches trial, you can expect the highest expenses. Trial preparation involves:
- Witness preparation
- Exhibits and demonstratives
- Extensive attorney hours
- Court filings and briefing
- Travel and logistics
This final stage can easily add $50,000 to $ 200,000 to the total, depending on the complexity.
What Businesses Can Do to Manage Costs
IP litigation does not have to drain your entire operating budget. Planning early in the process can help keep expenses under control. Here are a few tips:
- Get a legal opinion early: With an experienced attorney, you can evaluate your position and avoid unnecessary litigation.
- Preserve all evidence: You want to secure documents, emails, branding materials, and digital files early. Any disorganization can drive up costs.
- Consider whether alternative dispute resolution makes sense: Mediation or structured negotiations are more cost-effective than a full trial.
- Work with a firm that understands your industry: A lawyer who knows your business model can work more efficiently. They can tailor the strategy to your goals.
A Smarter Approach to IP Litigation
How much does intellectual property litigation cost? If you are not careful, the price tag can rise quickly. However, with the right strategy and the right legal team, you can protect your innovations, your brand, and your bottom line without unnecessary expense.
At Phillips & Bathke, P.C., we help Illinois businesses and creators with IP litigation. Whether facing a trademark conflict, a copyright dispute, a trade secret issue, or another complex IP conflict, we’re here to help you. Schedule a consultation today.
