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Injunctive and reverse settlements in competition-blocking litigation

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  • Keith Hylton
  • Sungjoon Cho

Abstract

We distinguish standard settlements, in which the status quo is preserved, and injunctive settlements, which prohibit the defendant’s activity. The reverse (payment) settlement is a special type of injunctive settlement. We examine the divergence between private and social incentives to settle and policies that would minimize socially undesirable injunctive and reverse settlements (e.g., banning reverse settlements). The results are applied to competition-blocking litigation, such as patent infringement and antidumping. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Keith Hylton & Sungjoon Cho, 2013. "Injunctive and reverse settlements in competition-blocking litigation," European Journal of Law and Economics, Springer, vol. 36(2), pages 243-269, October.
    • Handle: RePEc:kap:ejlwec:v:36:y:2013:i:2:p:243-269
    DOI: 10.1007/s10657-011-9279-y
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    References listed on IDEAS

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    More about this item

    Keywords

    Litigation; Reverse payment settlements; Injunctive settlements; Patent infringement litigation; Waiver agreements; Antidumping; F13; K21; K33; K41; L43; O31;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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