Why are patent lawyers so expensive?
- by admin
Patents are expensive to make.
When a patent expires, companies pay patent attorneys to defend against a patent lawsuit.
When an individual wins a patent infringement lawsuit, they often receive an annual royalty on the royalties.
But for many, the legal fees can be more than the cost of a patent.
Patent attorney salaries range from $200,000 to $500,000, according to data compiled by patent attorney firm JAMS, which represents many patent owners.
A patent attorney typically receives $75,000 a year to defend a patent and is paid $1.25 million in annual royalties.
In the case of patent infringement lawsuits, an attorney typically makes more than $300,000 in royalties for a year’s work.
“Patents are an investment, and the only way to make it worthwhile is to be a good patent attorney,” says Mark Deere, an associate professor of law at Loyola University New Orleans who has written extensively on patent litigation.
Deere says the high salaries for patent lawyers also comes at a cost: They may take longer to decide whether to file a lawsuit, and they’re often forced to defend cases on behalf of their clients in the courts.
To learn more about the differences between the cost and benefits of patent litigation, we spoke with Deere and the founder of a company called Patents for All, a nonprofit organization that helps patent owners get a patent attorney.
Dees company, Patents4All, has been able to save hundreds of thousands of dollars in attorneys’ fees in the past few years.
“In a typical year, we have paid attorneys nearly $2 million in legal fees,” Deere said.
In response to the increase in attorneys fees, the American Bar Association has changed its policy on patent attorneys.
“We are not encouraging the use of patent attorneys in all litigation cases,” the new policy reads.
“The AMA recognizes that the costs of litigation can be considerable.
However, we do encourage the use and use of the patent attorney as a court advocate, as an expert witness, as a fact witness, or as a lawyer on appeal.”
In the meantime, Deere recommends hiring a lawyer that can do more than defend you in court.
“If you have a problem, call an attorney, but if you’re in an economic situation where you don’t have the money to pay a lawyer, hire someone that has the expertise and the experience to help you,” Dees said.
“It doesn’t have to be the patent lawyer.
It could be a lawyer with an MBA or a law school.”
For more from Next Big Futures, visit the nextbigfuture.com.
Like this: Like Loading…
Patents are expensive to make.When a patent expires, companies pay patent attorneys to defend against a patent lawsuit.When an individual…