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Injunctive and Reverse Settlements in Competition-Blocking Litigation

32 Pages Posted: 17 Oct 2009 Last revised: 16 Aug 2012

Keith N. Hylton

Boston University - School of Law

Sungjoon Cho

Chicago Kent College of Law

Date Written: October 16, 2009

Abstract

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

Hylton, Keith N. and Cho, Sungjoon, Injunctive and Reverse Settlements in Competition-Blocking Litigation (October 16, 2009). Boston University School of Law Working Paper No. 09-47. Available at SSRN: https://ssrn.com/abstract=1490013 or http://dx.doi.org/10.2139/ssrn.1490013

Keith N. Hylton (Contact Author)

Boston University - School of Law ( email )

765 Commonwealth Avenue
Boston, MA 02215
United States
617-353-8959 (Phone)
617-353-3077 (Fax)

Sungjoon Cho

Chicago Kent College of Law ( email )

565 W. Adams St.
Chicago, IL 60661-3691
United States

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