European Journal of Law and Economics

, Volume 36, Issue 2, pp 243–269

Injunctive and reverse settlements in competition-blocking litigation

Article

DOI: 10.1007/s10657-011-9279-y

Cite this article as:
Hylton, K.N. & Cho, S. Eur J Law Econ (2013) 36: 243. doi:10.1007/s10657-011-9279-y

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.

Keywords

LitigationReverse payment settlementsInjunctive settlementsPatent infringement litigationWaiver agreementsAntidumping

JEL Classification

F13K21K33K41L43O31

Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.Boston UniversityBostonUSA
  2. 2.Chicago-Kent College of LawChicagoUSA