What is the cost of fighting an Amazon seller patent case?
The cost of an Amazon patent evaluation can range from a few thousand dollars to tens of thousands. Patent litigation in federal court can range from hundreds of thousands to millions. Is there an Amazon contingency patent attorney who will charge attorney’s fees based on results of a neutral evaluation?
Need an Amazon contingency patent attorney who will charge fees based on results? Contact US patent attorney Vic Lin at vlin@icaplaw.com to explore how we can help.
How would contingency fees work for Amazon APEX and design patent evaluations?
Generally, a contingency fee arrangement between an attorney and a client involves a reduction of attorney’s fees in exchange for a certain share of the potential financial reward. Taking a patent case on contingency is making an investment. And any investment worth making requires due diligence.
A patent attorney exploring the possibility of working on an Amazon seller patent case must evaluate whether a contingency arrangement would make financial sense. Accordingly, an initial case assessment is required to determine whether an Amazon patent infringement case is worth investing in.
Initial Case Assessment: What are crucial factors we look for?
An initial case assessment of a potential Amazon patent infringement matter requires an evaluation of the:
- Dollar amount at issue; and
- Probability of success.
For patent owners, the dollar amount at issue would be an estimate of increased gross profits if the patent were successfully enforced against infringing Amazon sellers.
For Amazon sellers accused of infringement, the dollar amount at issue would be the gross profits of sales of the accused products on Amazon. We may want to consider both past and recent sales on the Amazon platform, including estimates of growth based on historical trends.
We require a gross profit of at least $5,000 per month in Amazon sales for our firm to consider taking on a patent infringement matter on contingency.
Probability of Success: What is the cost of an initial infringement assessment?
The cost of our initial case assessment will vary depending upon the complexity of the case. Assuming the dollar amount of your Amazon sales meets our minimum threshold, we will provide a flat rate cost for conducting a preliminary infringement analysis.
The results of our preliminary analysis will dictate whether or not we move forward with your Amazon patent infringement matter.
In other words, we may agree to take your case on a contingency or hybrid contingency basis if both the amount at stake and the probability of success are high.
How can Amazon Sellers accused of patent infringement fight back without paying excessive attorney’s fees?
Amazon Sellers with strong patent defenses have a couple of options. For example, noninfringement may be argued in an APEX or design patent neutral evaluation if Amazon has sent an evaluation agreement to the seller.
Many Amazon sellers may never receive an invitation to a neutral patent evaluation. In these situations, there might be ways to apply pressure on the patent owner to get them to retract the infringement complaint. For example, the validity of the patent may be challenged if certain products covered by the patent were on sale long before the patent application filing date.
Furthermore, accused infringers with strong noninfringement arguments or great prior art for invalidating the patent might consider filing a federal court lawsuit for declaratory judgment. Since attorney’s fees are typically much higher in federal court patent litigation, potential litigants may need to consider hybrid contingency arrangements as well as litigation funding.
Why are success-based attorney’s fees better for patent owners and Amazon sellers accused of infringement?
Success-based attorney’s fees are earned only if the client’s desired results are achieved. Such contingency fees, or hybrid contingency fees as the case may be, align the attorney’s interests with the client’s interest.
Risk is shifted from the client to the Amazon patent contingency attorney. In turn, the attorney takes an outsized proportion of the monetary reward if successful. Of course, patent attorneys experienced in infringement know what a winning case looks like and would only consider success-based fees for cases that fit within certain parameters.
What costs must be covered by the client in an Amazon seller patent case?
If a neutral patent evaluation has been offered, then each side must also pay a deposit to the evaluator in addition to attorney’s fees. Currently, the amount of the evaluator deposit is $4,000 which will be refunded to the winning party.
Any government fees must be paid by the client if the approach involves, for example, a request for reexamination to be filed with the US Patent and Trademark Office.
