When domestic enterprises gain international competiveness and establish foreign presence, they may engage in cross-national litigation. While cross-border litigation consumes time and costs resources, it not only influences the amount of money involved in the lawsuit but it it also challenges the image and market the company has built. The consequences of failing to secure a victory may be devastating. For example:
1.According to various studies, one cross-border patent infringement case costs 3 million US dollars, which are spent on litigation. Additionally, some 1.5 million US dollars spent on consulting leading up to the litigation and post litigation restructuring.
2.In an event of a loss, all profits earned are usually reverted back to the rightful patent holder.
3.Failure to defend patent rights will result in an immediate loss of the market share. Products will be forbidden from being sold, which in turn affects the productivity of related factories and encourages layoffs.
4.In the long term, the losing company may be distrusted by distributors and customers and will face scrutiny of its stockholders.
However, an efficient litigation strategy from the moment of receiving the warning file to formal legal proceedings will maximize the ability of a company to successfully defend itself. Our firm provides consulting and legal risk assessment based on the characteristics of the client’s company to develop the most appropriate litigation strategy.