Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
We study the timing of settlement in patent disputes, accounting for an alleged infringer’s search for evidence to challenge patent validity. Early settlements are more likely reached when the disputed patent has a low quality, and late settlements take place when the alleged infringer finds strong evidence that challenges patent validity. Thus, there is a tendency to settle disputes over patents that would have likely been invalidated in court. Fee shifting induces more early settlements, and when parties did not settle early, a higher expenditure on invalidating the patent. Our model sheds light on disputes involving patent assertion entities.