Abstract
Patent litigation is an expensive proposition for all parties concerned. Settlement avoids much of the cost, but occurs out of the spotlight: little is therefore known about how much is going on, when it happens, or what factors are taken into account. This article uses the results from a mail-out questionnaire administered to patent lawyers, to provide empirical evidence relating to the extent, timing and outcomes of settlement of patent litigation in Australia, and the factors considered by lawyers when advising their clients on settlement decisions. The results indicate that, consistent with conventional wisdom, financial cost is a very important factor when considering settlements, but that many other factors are also important. Some factors that might be expected to be important, including the psychological factors relating to litigation reputations, were indicated to be much less important. The article also comments on the merits of using a questionnaire to examine legal practice.