In the United States, the average amount of damages in IP litigation can vary widely depending on the type of intellectual property at issue, the severity of the infringement, and a number of other factors. In this blog post, we will explore some of the factors that can influence the amount of damages in IP litigation and provide some examples of notable cases.

Types of Intellectual Property and Damages

There are several types of intellectual property, including patents, trademarks, copyrights, and trade secrets. Each type of IP is subject to different legal protections and can result in different types of damages.

Patents are a type of IP that protects inventions and processes. In patent litigation, damages can be calculated based on lost profits or a reasonable royalty. Lost profits are calculated based on the amount of money the plaintiff would have earned if the infringing product had not been on the market. A reasonable royalty is a hypothetical payment that the infringing party would have paid to the patent holder to license the technology.

Trademarks are a type of IP that protects words, phrases, symbols, and designs that identify the source of goods or services. In trademark litigation, damages can be calculated based on the profits that the infringing party made from the use of the trademark.

Copyrights are a type of IP that protects creative works such as books, music, and art. In copyright litigation, damages can be calculated based on the profits that the infringing party made from the use of the copyrighted work or based on the value of a hypothetical license fee.

Trade secrets are a type of IP that protects confidential information such as customer lists, manufacturing processes, and marketing strategies. In trade secret litigation, damages can be calculated based on the profits that the infringing party made from the use of the trade secret or based on the costs that the plaintiff incurred in developing the trade secret.

Factors Affecting Damages

The amount of damages in IP litigation can be influenced by a wide range of factors, including the strength of the evidence, the severity of the infringement, the type of intellectual property at issue, and the jurisdiction in which the case is being heard.

For example, in a patent litigation case, the amount of damages can be influenced by the strength of the patent itself. If the patent is weak or has a narrow scope, the damages may be lower. Similarly, if the infringement is severe or widespread, the damages may be higher.

In trademark litigation, the amount of damages can be influenced by the strength of the trademark and the extent to which it has been diluted by the infringing use. In copyright litigation, the amount of damages can be influenced by the extent to which the infringing use was intentional or willful.

Notable Cases

There have been many notable cases in which the damages in IP litigation have been significant. For example, in the Apple v. Samsung patent litigation case, Apple was awarded $1.05 billion in damages after a jury found that Samsung had infringed on several of Apple's patents. In the Oracle v. Google copyright litigation case, Oracle was awarded $9.3 billion in damages after a jury found that Google had infringed on Oracle's copyright in the Java programming language.

Federal Damage Statistics for Intellectual Property

• data based on 9,914 federal district court cases dating from 2003 to 2023

Distribution of Damage Amounts

Distribution | Percentage of total dockets $1-$5k | 18% $5k-$50k | 46% $50k-$100k | 9% $100k-$500k | 16% $500k-$1m | 4% $1m-$50m | 8% $50m+ | 1% |

Damage Types (Monetary Damages)

Damages Type | Number of dockets | Median awarded amount Compensatory Damages | 3,957 | $25,000 Settlement | 1,558 | $12,472 Statutory Damages | 894 | $35,000 Liquidated Damages | 68 | $26,261 Interest | 63 | $22,313 Punitive Damages | 32 | $75,000

Damage Types (Attorneys Fees and Costs)

Damages Type | Number of dockets | Median awarded amount Litigation Costs & Expenses | 3,971 | $703 Attorney Fees | 2,112 | $9,564

Court (Monetary Damages)

Court | Number of dockets | Median awarded amount C.D.Cal. | 942 | $3,954 N.D.Cal. | 282 | $10,570 N.D.Ill. | 263 | $3,685 N.D.Tex. | 223 | $1,000 S.D.N.Y. | 223 | $1,832 D.Ariz. | 194 | $2,771 E.D.N.Y. | 174 | $320 N.D.Ga. | 165 | $3,178 E.D.Tex. | 132 | $20,848 S.D.Fla. | 131 | $2,700 M.D.Fla. | 129 | $4,749 D.Colo. | 122 | $4,434 E.D.Va. | 119 | $4,746 D.N.J. | 116 | $4,714 D.Nev. | 114 | $5,714 S.D.Tex. | 111 | $7,450 E.D.Pa. | 101 | $3,587 S.D.Cal. | 97 | $9,335 W.D.Wash. | 86 | $8,898 D.S.C. | 76 | $420

Court (Monetary Damages)

Court | Number of dockets | Median awarded amount C.D.Cal. | 942 | $3,954 N.D.Cal. | 282 | $10,570 N.D.Ill. | 263 | $3,685 N.D.Tex. | 223 | $1,000 S.D.N.Y. | 223 | $1,832 D.Ariz. | 194 | $2,771 E.D.N.Y. | 174 | $320 N.D.Ga. | 165 | $3,178 E.D.Tex. | 132 | $20,848 S.D.Fla. | 131 | $2,700 M.D.Fla. | 129 | $4,749 D.Colo. | 122 | $4,434 E.D.Va. | 119 | $4,746 D.N.J. | 116 | $4,714 D.Nev. | 114 | $5,714 S.D.Tex. | 111 | $7,450 E.D.Pa. | 101 | $3,587 S.D.Cal. | 97 | $9,335 W.D.Wash. | 86 | $8,898 D.S.C. | 76 | $420

Court (Monetary Damages)

Case type | Number of dockets | Median awarded amount Intellectual Property & Technology | 6,457 | $22,433

Court (Attorney Fees and Costs)

Case type | Number of dockets | Median awarded amount Intellectual Property & Technology | 5,548 | $3,604

Law Firm (Monetary Damages)

Foley & Lardner LLP | 276 | $6,750 Bryan Cave Leighton Paisner LLP | 247 | $6,750 Cowan, Liebowitz & Latman, P.C. | 212 | $6,000 Greenberg Traurig, LLP | 150 | $102,501 Shook, Hardy & Bacon L.L.P. | 136 | $6,750 Greer, Burns & Crain, Ltd. | 119 | $150,000 Robinson & Cole LLP | 115 | $6,000 J. Andrew Coombs | 113 | $100,000 Balch & Bingham LLP | 101 | $6,750 DLA Piper LLP (US) | 90 | $9,875 Troutman Pepper Hamilton Sanders LLP | 86 | $9,000 Nexsen Pruet, LLC | 84 | $6,000 Mitchell Silberberg & Knupp LLP | 83 | $7,800 Reed Smith LLP | 65 | $7,920 Loeb & Loeb LLP | 63 | $6,000 Pattishall, McAuliffe, Newbury, Hilliard & Geraldson LLP | 60 | $7,240 Kilpatrick Townsend & Stockton LLP | 59 | $48,029 Jenner & Block LLP | 58 | $6,750 Mandell Menkes LLC | 58 | $6,750 Arnold & Porter Kaye Scholer LLP | 57 | $25,000

Law Firm (Attorney Fees and Costs)

Foley & Lardner LLP | 228 | $420 Bryan Cave Leighton Paisner LLP | 210 | $420 Cowan, Liebowitz & Latman, P.C. | 131 | $315 DLA Piper LLP (US) | 121 | $1,586 Greenberg Traurig, LLP | 119 | $8,852 Perkins Coie LLP | 113 | $11,943 Shook, Hardy & Bacon L.L.P. | 110 | $333 Troutman Pepper Hamilton Sanders LLP | 106 | $3,330 Kilpatrick Townsend & Stockton LLP | 97 | $10,744 Quinn Emanuel Urquhart & Sullivan, LLP | 92 | $23,208 Jones Day | 85 | $7,871 Balch & Bingham LLP | 84 | $420 Reed Smith LLP | 83 | $620 Nexsen Pruet, LLC | 81 | $420 Fish & Richardson P.C. | 79 | $22,032 K&L Gates LLP | 77 | $13,425 Morgan, Lewis & Bockius LLP | 75 | $15,396 Arnold & Porter Kaye Scholer LLP | 73 | $11,635 Mitchell Silberberg & Knupp LLP | 73 | $285 Faegre Drinker Biddle & Reath LLP | 70 | $4,202

Year (Monetary Damages)

Year | Number of dockets | Median awarded amount 2022 | 71 | $35,000 2021 | 137 | $60,000 2020 | 129 | $40,000 2019 | 171 | $33,415 2018 | 157 | $50,000 2017 | 178 | $32,982 2016 | 174 | $58,945 2015 | 182 | $35,700 2014 | 213 | $73,358 2013 | 228 | $56,768 2012 | 175 | $60,000 2011 | 239 | $60,456 2010 | 258 | $99,500 2009 | 242 | $74,957 2008 | 364 | $31,217 2007 | 537 | $10,580 2006 | 715 | $7,450 2005 | 697 | $7,500 2004 | 559 | $7,678 2003 | 215 | $25,000

Year (Attorney Fees and Costs)

Year | Number of dockets | Median awarded amount 2022 | 22 | $6,570 2021 | 77 | $8,643 2020 | 130 | $3,046 2019 | 156 | $6,000 2018 | 216 | $5,536 2017 | 206 | $7,452 2016 | 204 | $9,178 2015 | 198 | $7,131 2014 | 189 | $8,000 2013 | 244 | $7,364 2012 | 223 | $8,074 2011 | 218 | $6,891 2010 | 215 | $6,293 2009 | 190 | $6,673 2008 | 258 | $3,722 2007 | 425 | $1,338 2006 | 590 | $420 2005 | 507 | $375 2004 | 417 | $325 2003 | 240 | $3,309

Conclusion

Intellectual property litigation is a complex area of law that involves a wide range of legal issues and can result in significant damages. The amount of damages in IP litigation can be influenced by a wide range of factors, including the strength of the evidence, the severity of the infringement, and the type of intellectual property at issue.

While the average amount of damages in IP litigation can vary widely depending on the specific case, it is important for both plaintiffs and defendants to understand the potential costs involved in pursuing or defending against an IP lawsuit. In addition to the financial costs, IP litigation can also have significant business implications, such as reputational harm or lost market share.

It is worth noting that some IP cases may also result in injunctive relief, which prohibits the infringing party from continuing to use or distribute the IP at issue. In some cases, an injunction may be more valuable to the plaintiff than damages, as it can prevent future harm and provide a stronger legal foundation for protecting their IP rights.

In conclusion, the average amount of damages in IP litigation in the United States can vary widely depending on a range of factors. While significant damages awards are not uncommon in high-profile cases, it is important for both plaintiffs and defendants to understand the potential financial and business costs of IP litigation and to seek experienced legal counsel to help navigate the complex legal landscape of IP disputes. Ultimately, protecting and enforcing IP rights is an important part of fostering innovation and promoting economic growth, and the legal system plays a vital role in ensuring that those rights are respected and upheld.