Over the past 10 years, litigation costs have skyrocketed, both because of legal fees and structural changes in litigation. In 2001, a typical patent dispute with potential damages of $1 to $25 million generated $1.5 million in legal fees and expenses. A trial over a similar patent dispute today would generate at least $3 million in legal fees and expenses. In light of these rising costs and the economy’s decline, clients have been looking for ways to reduce the cost of patent litigations. To that end, below are 10 tips for corporate litigation counsel to consider to reduce the cost — but not the quality — of patent litigation.

No. 1: Build a strong relationship with outside counsel. The first rule is the most natural one. Hire attorneys that you trust and have confidence will work in your corporation’s best interest. Your outside counsel should appreciate and respect not just your pet peeves and your corporate protocol for litigation, but most importantly, the rationale supporting the parameters by which you manage litigation. Before outside counsel files the first pleading, make sure to communicate: 1. your preferences regarding how litigations are managed and tried; 2. your company’s culture and motivations generally driving the litigation decision-making process; 3. your company’s risk tolerances and approach to dispute resolution; and 4. the impact of positive, negative and settlement outcomes on your company.

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