July 20, 2016

Halo’s Enhanced Patent Infringement Damages Bring Enhanced M&A Risks

Here’s the intro from this Cleary Gottlieb blog:

In a recent ruling (Halo Elecs., Inc. v. Pulse Electronics, Inc. and Stryker Corp. v. Zimmer, Inc.), the US Supreme Court adopted a relaxed and more plaintiff-friendly standard for determining whether to award enhanced damages in patent infringement litigation. This ruling should be taken into account when considering allocation of patent infringement risks in M&A transactions, including in connection with representations and warranties and associated indemnities.