Injunctive and Reverse Settlements in Competition-Blocking Litigation
32 Pages Posted: 17 Oct 2009 Last revised: 16 Aug 2012
Date Written: October 16, 2009
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.
Keywords: standard settlements, injunctive settlements, reverse settlements, competitition-blocking litigation, patent infringement, antidumping
JEL Classification: K00, K21, K41
Suggested Citation: Suggested Citation