How Much Does Patent Infringement Litigation Cost?
Note: Protego, LLC is not a law firm. This content is for general informational purposes only and should not be relied upon as legal, financial, or tax advice. See full disclaimer at the end of this article.
Understanding the Costs of Patent Infringement Litigation
Before filing a complaint for patent infringement, it is important for patent owners to have a general understanding of the potential costs involved. While these costs can be significant, there are litigation funding options that may help manage financial risk. The figures discussed below are general estimates based on industry surveys and should not be taken as projections for any individual case.
Inter Partes Review (IPR)– Impact on Patent Litigation Costs
Patent litigation can become especially costly when the defendant challenges the validity of your patents through the Inter Partes Review (IPR) process at the United States Patent and Trademark Office (USPTO). The purpose of an IPR is to challenge the validity of issued patent claims. Even when a patent survives an IPR, the process may result in narrower claims that can be more difficult to assert in subsequent litigation.
The IPR process generally takes approximately 12 to 18 months, though the Patent Trial and Appeal Board (PTAB) may extend proceedings by up to six months. During this period, attorneys and expert witnesses on both sides are actively engaged in preparing responses, conducting discovery, filing motions, managing depositions, attending oral hearings, and communicating with opposing counsel and the PTAB.
With attorney and expert hourly rates that commonly range from $450 to $750 or more per hour, costs for a single IPR proceeding may reach approximately $350,000 to $500,000 or higher, depending on the complexity of the technology and the number of claims at issue. Additional costs may arise if appeals are pursued.
According to USPTO data, the number of IPR proceedings is relatively small compared to the total number of U.S. patents in force. The cost and uncertainty of the IPR process can be a significant factor in a patent owner’s decision about whether to pursue enforcement.
Costs During the Litigation Phase
If a case proceeds past any IPR challenges and no satisfactory settlement is reached, the next phase is typically trial. Patent litigation trials involve substantial costs for technical and damages experts, document production and review, paralegal support, and attorney fees. Even with a contingency fee arrangement covering attorney fees, a patent owner may still be responsible for litigation expenses that can approach or exceed $1 million in some cases.
The total cost of patent litigation depends on many factors, including the complexity of the technology, the amount at stake, the number of patents and claims asserted, and the aggressiveness of the defense. According to the American Intellectual Property Law Association (AIPLA) Economic Survey, average litigation costs have historically been reported in the following general ranges:
| Amount at Risk | $1M – $10M | $10M – $25M | > $25M |
| Est. Cost of IPR* | $350K – $500K | $350K – $500K | $350K – $500K |
| Est. Cost of Litigation | $1M – $2M | $2M – $3.5M | $4M+ |
| Est. Total Cost | $1.5M – $2.5M | $2.5M – $4M | $4.5M+ |
*Assumes one IPR proceeding and no appeal. Costs are general estimates based on industry surveys and may vary significantly based on case-specific factors. Source: AIPLA Economic Survey.
Litigation Funding May Help Cover Costs
Many individual inventors and small businesses do not have the financial resources to sustain multi-year patent litigation against well-funded defendants. Larger companies may have significant advantages simply due to their ability to absorb the costs of prolonged legal proceedings.
Litigation funding—sometimes called third-party litigation financing—is one option that may help patent owners bridge this resource gap. Through litigation funding, an outside investor provides capital to cover legal costs in exchange for a portion of any recovery if the case is successful. This type of funding is generally structured as non-recourse, meaning the patent owner typically owes nothing if the case is unsuccessful, though the specific terms of any funding arrangement will govern.
To learn more about whether litigation funding may be an option for your patent case, contact Protego, LLC for a free, no-obligation initial consultation.
Disclaimer
This article is for general informational purposes only and reflects the views of the Protego, LLC (“Protego”) team as of the date of publication. Protego is not a law firm and does not provide legal, financial, investment, or tax advice. Nothing in this article should be construed as or relied upon as professional advice. The information presented may not reflect the most current legal developments, and Protego makes no representations or warranties regarding its accuracy or completeness.
Protego does not guarantee that litigation funding will be obtained or that any particular outcome will result from pursuing patent enforcement. All cases are unique, and results depend on the specific facts and circumstances involved. For advice specific to your situation, please consult a qualified attorney, financial advisor, or tax professional.
Protego has a financial interest in matters it presents to funding partners. Fee structure and terms are disclosed in writing before any engagement begins.
Last reviewed: February, 2026