Injunctive and Reverse Settlements in Competition-Blocking Litigation
Keith N. Hylton
Boston University - School of Law
Chicago Kent College of Law
October 16, 2009
Boston University School of Law Working Paper No. 09-47
We distinguish standard settlements, in which the status quo is preserved, and injunctive settlements, which prohibit the defendant’s activity. The reverse 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.
Number of Pages in PDF File: 32
Keywords: standard settlements, injunctive settlements, reverse settlements, competitition-blocking litigation, patent infringement, antidumping
JEL Classification: K00, K21, K41
Date posted: October 17, 2009 ; Last revised: August 16, 2012
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