Key Takeaways

  • Inter partes review (IPR) costs typically range from $300,000 to $700,000, far less than district court litigation, which can exceed $1 million.
  • The complexity of the case, number of petitions, and involvement of expert witnesses significantly influence total expenses.
  • Choosing an experienced inter parties review attorney is essential for strategy, procedural compliance, and maximizing chances of success.
  • Strategic decisions—like filing multiple petitions, pursuing stays, or challenging motions to amend—can affect both cost and outcome.
  • The PTAB can impose sanctions for abusive conduct during IPR proceedings, adding potential financial and legal consequences.

The cost of inter partes review (IPR) can be several hundred thousand dollars. This review is required as part of a trial proceeding conducted by the Patent Trial and Appeal Board (PTAB) of the United States Patent and Trademark Office (USPTO) to determine whether claims made are patentable, based on prior art under section 102 and 103 of patent laws.

How Much Does an Inter Partes Review Cost?

A rough estimate of an IPR's cost is between $300,000 and $600,000. This cost is quite high but is still less than what it could cost to take legal action against a patent infringement in a federal court of law. The cost for this litigation often reaches between $1 million and $4 million. If an IPR happens, the fees from the USPTO alone start at $23,000. With such high costs in the six-figure range, it is critical to invest thoroughly in a search for prior art before beginning the process of filing for patent protection.

Many judges in federal courts have become more favorable to the suspension of a pending lawsuit around patentability. This suspension, referred to as a stay, allows the involved parties to wait for the results of an IPR. When this review begins, the process takes one year to complete. Defendants of patent infringement claims can defer the costs associated with litigation, including those related to the discovery and review of the patent claims made. The deferment will occur while the PTAB reviews the claims and performs the review.

Factors Influencing Total IPR Costs

While base filing fees and legal representation account for most expenses, several additional factors can significantly impact the overall cost of an IPR. Understanding these will help you and your inter parties review attorney plan a more effective and cost-conscious strategy:

  • Complexity of the Patent Claims: Broad or technically intricate claims often require more extensive research, expert analysis, and longer hearings.
  • Number of Petitions Filed: Each petition incurs separate filing fees and legal costs. Complex disputes involving multiple claims or patents often require multiple petitions, which can push total costs well above $1 million.
  • Discovery and Expert Witnesses: Although discovery in IPR is narrower than in district court, costs can still escalate when deposing experts, producing technical documents, or preparing rebuttal reports.
  • Institution Decisions and Appeals: If the PTAB declines to institute the review or if an appeal follows a final written decision, additional rounds of briefing and argument can increase costs.
  • Motions to Amend: Patent owners may file motions to amend claims during IPR proceedings. Responding effectively to these motions can require significant additional attorney work and expert support.

Collaborating early with an experienced inter parties review attorney helps anticipate these variables and budget more accurately for the proceedings.

IPRs: Balancing Effectiveness vs. Cost

An IPR is generally considered to be an alternative to litigation in a court of law that is more cost-effective than taking legal action. Although IPRs are cheaper than court cases, they aren't always sufficient to get the results needed, especially when they are single-petition strategies. However, strategies with multiple petitions can cost millions of dollars, eliminating the cost-effective benefit. The campaign's circumstances and the strategy of those involved in the patent process will determine whether an IPR is the right option for patent assertion claims.

Strategic Role of an IPR Attorney

A knowledgeable inter parties review attorney does more than argue before the Patent Trial and Appeal Board (PTAB) — they shape the entire litigation strategy. Because IPR proceedings operate under unique procedural and evidentiary rules, skilled legal counsel can make a substantial difference in both cost and outcome.

Key roles of an IPR attorney include:

  • Petition Drafting: Crafting a persuasive petition supported by strong prior art references is critical to securing institution and eventual claim cancellation.
  • Procedural Navigation: Attorneys must navigate strict deadlines and procedural nuances, including page limits, filing requirements, and expert declarations.
  • Claim Construction and Invalidity Arguments: Presenting compelling claim construction positions and invalidity arguments under 35 U.S.C. §§ 102 and 103 is essential.
  • Negotiating Settlements: Many IPRs are resolved through settlements. Attorneys skilled in negotiation can help clients reduce exposure and control costs.
  • Coordinating Parallel Litigation: If district court litigation is pending, an attorney’s strategic coordination—such as requesting a stay—can provide substantial cost savings.

A seasoned attorney also advises on whether an IPR is the right move or whether a different strategy (e.g., ex parte reexamination or litigation) would better serve your goals.

Cost Baseline

When looking at the benefits of an IPR, the first thing to consider is the baseline cost. The cost of an IPR is usually in the six-figure range, often between $100,000 and $700,000. The exact cost depends on what stage of litigation is reached, although the cost still varies even when cases reach the same stage. One petition could be more expensive to file than what the total cost would be to reach a final decision on another petition. Specific circumstances within each case will drive the cost.

If a petitioner files a petition that is similar to an existing one and uses the same arguments from a previous IPR, this is called a copycat strategy. Using a copycat strategy can reduce the time required for a counsel to review the claim. Benefits include:

  • Cost savings
  • Counsel time savings, which reduces cost as well

The cost of litigation in a district court can often reach the seven-figure range by the time claims have been proven to be valid or not, which usually happens in a trial or at the summary judgment. The six-figure range for an IPR is certainly much cheaper than the cost of litigation.

Based on cost alone, the IPR strategy is more attractive than litigation. With a timeline of 12-18 months for an IPR, the amount of time it will take to resolve the claims is also more appealing than going through a lengthy court case. However, it's also important to consider the circumstances to determine whether litigation or an IPR is a better option.

Risks, Sanctions, and Cost Implications

Beyond expected legal fees and USPTO costs, parties should understand the risks of financial penalties during IPR proceedings. The PTAB has authority to impose sanctions for abusive conduct, including discovery violations, bad-faith filings, or misconduct during settlement negotiations.

For example, in a recent case, the PTAB sanctioned a petitioner for abusing the IPR process by attempting to extract a monetary settlement unrelated to the merits of the case. The Board awarded more than $400,000 in fees and costs to the opposing party as a result.

Such decisions highlight why working with an ethical and experienced inter parties review attorney is crucial. They help ensure compliance with PTAB procedures and avoid costly missteps that could jeopardize your case or lead to financial penalties.

Stays and Multiple Petitions

A single-patent litigation campaign could be simplified by an IPR petition. When the judge in a district court issues a stay for an IPR, this specific action is a faster and more cost-effective alternative to going through the entire litigation process, which will often require a jury verdict or summary judgment and require over $1 million in costs. However, if more than one patent is asserted in a case, the IPR strategy could add more costs as the PTAB reviews each of the claims. In a multiple-petition case, an IPR strategy might only address some of the issues.

Post-IPR Considerations and Cost Recovery Strategies

Even after a final written decision is issued, parties may face additional costs and strategic decisions:

  • Appeals to the Federal Circuit: Either party can appeal an adverse PTAB decision. Appeals can add hundreds of thousands of dollars in legal fees but may be worthwhile to protect key IP assets or invalidate a competitor’s patent.
  • Settlement Agreements: In many cases, parties negotiate settlements after the PTAB decision, sometimes incorporating licensing terms, cross-licenses, or royalty payments. These arrangements can offset prior costs and create future revenue.
  • Cost Recovery Motions: In rare cases involving misconduct or bad faith, prevailing parties can seek attorney fees or sanctions, partially offsetting the significant investment made during the IPR process.

Discussing these post-IPR steps with your attorney during the planning phase can help you make informed financial decisions and maximize the long-term value of the review.

Frequently Asked Questions

  1. How much does an inter partes review typically cost?
    Most IPR proceedings cost between $300,000 and $700,000, depending on factors like complexity, number of petitions, and expert involvement.
  2. Why should I hire an inter parties review attorney?
    IPR proceedings involve complex legal and procedural issues. An experienced attorney ensures compliance, builds strong invalidity arguments, and can help reduce costs through strategic decisions.
  3. Can I recover costs from an IPR proceeding?
    Cost recovery is rare but possible in cases of misconduct or if the PTAB imposes sanctions against the opposing party.
  4. Are motions to amend expensive to litigate?
    Yes. Responding to or opposing a motion to amend often involves additional expert analysis, legal research, and briefing, significantly increasing costs.
  5. What happens if the PTAB rules against me?
    You may appeal the decision to the Federal Circuit, pursue settlement options, or explore alternative IP strategies with your attorney.

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