How NPE Patent Infringement Mediation Saves Costs and Time for Both Sides

How NPE Patent Infringement Mediation Helps Companies Resolve Patent Cases Faster and With Less Cost

Few legal events create the immediate frustration and disruption of receiving a patent infringement demand from a non-practicing entity (NPE)—often labeled a “patent troll.” These cases frequently involve modest alleged damages but significant defense costs, forcing companies into an uncomfortable calculation: spend more to fight than it would cost to settle.

NPE patent infringement mediation offers a smarter alternative.

Rather than racing toward expensive discovery, motion practice, and venue fights, mediation allows parties to evaluate risk early and pursue resolution through a structured, confidential process designed to align litigation cost with commercial reality. For companies facing NPE assertions, mediation is often not just efficient—it is essential.

This article explains why NPE cases are uniquely suited for mediation, how the process works, and how businesses can use mediation to regain control before defense costs spiral. If you have a traditional patent infringement case, see our patent mediation services for more information.

Why NPE Patent Cases Are Different

NPE patent disputes differ fundamentally from traditional competitor litigation. The asserting entity typically does not manufacture products, compete in the marketplace, or risk injunction exposure. Instead, leverage is driven by:

• The high cost of patent defense

• Procedural pressure (venue, discovery, timelines)

• Portfolio-based assertion strategies

• Asymmetric risk (defense costs vs. settlement value)

For operating companies, the goal is rarely to “win at trial.” It is to resolve the dispute efficiently, predictably, and at a cost that makes business sense.

Mediation directly addresses this imbalance.

What NPE Patent Infringement Mediation Does Better Than Litigation

Litigation rewards delay and expense. Mediation rewards clarity and efficiency.

Through mediation, parties can:

• Evaluate claim strength without full discovery

• Assess exposure realistically

• Compare defense cost curves to settlement ranges

• Avoid protracted procedural battles

• Resolve disputes before fees eclipse liability

Because mediation is non-binding and confidential, parties can explore outcomes without sacrificing litigation posture.

The Role of an Experienced NPE Mediator

NPE mediation requires a mediator who understands the economics of patent assertion—not just patent law.

An effective mediator brings insight into:

• NPE business models

• Typical settlement ranges

• Portfolio assertion strategies

• Cost-of-defense dynamics

• Risk tolerance of operating companies

• How courts view early settlement efforts

This experience allows the mediator to cut through posturing and guide the parties toward realistic, data-driven outcomes.

Common Outcomes in NPE Patent Mediation

Courts can only decide liability and damages. Mediation can deliver solutions such as:

• Settlement agreements with paid up license clauses

• Portfolio-level licenses

• Structured payment terms

• Confidential settlement frameworks

• Phased or contingent agreements

• Global dispute resolution

• Predictable closure without copycat risk

These outcomes protect the business while limiting precedent exposure.

Why Early Mediation Matters in NPE Cases

Every procedural step in NPE litigation increases cost without increasing business value. Early mediation—often before claim construction or discovery—offers the highest return.

Benefits of early mediation include:

• Lower total defense spend

• Reduced internal disruption

• Faster closure

• Minimal operational distraction

• Controlled financial exposure

Even when mediation does not resolve the entire dispute, it often narrows issues dramatically.

Preparing for NPE Patent Infringement Mediation

Preparation should focus on:

1. Understanding the asserted claims

2. Estimating realistic exposure

3. Modeling defense costs versus damage theories

4. Identifying acceptable settlement ranges

5. Bringing decision-makers with authority

The goal is not to litigate the case in mediation—but to resolve it intelligently.

Conclusion: Mediation Aligns NPE Disputes With Business Reality

NPE patent infringement mediation restores balance to an otherwise lopsided process. By focusing on cost control, risk evaluation, and practical resolution, mediation allows companies to exit patent troll disputes quickly and on terms that make business sense.

Read more about our NPE patent infringement mediation services.

Ready to Begin a Conversation?

If you are handling a NPE patent infringement case, we are here to help. Mediation can reduce cost, maintain confidentiality, and support forward progress when litigation alone may not.

Request a confidential mediation session here.

Darin Klemchuk is a seasoned intellectual-property attorney, mediator, and the founder of Klemchuk PLLC, a law firm focused on IP, technology, and complex litigation. Through Klemchuk Mediations, he helps innovators, companies, and counsel resolve IP disputes earlier and more efficiently—often before litigation escalates—by applying decades of experience with high-stakes patent, trademark, and technology conflicts. Disclaimer: Klemchuk Mediation does not provide legal services.