How Settlements Work in Trademark and Copyright Infringement Lawsuits

IP Litigation Settlements
Written By Kristen Roberts

Introduction
When most people think about trademark or copyright infringement, they picture lengthy and expensive trials. The truth is, most IP lawsuits settle before ever reaching a courtroom. Settlements can save time, money, and business reputation—while still enforcing or protecting your intellectual property rights. In this blog, we’ll explain how settlements work, what they typically include, and when they might be the best option for your case.

Why Most IP Lawsuits Settle

  • Cost Savings: Litigation is expensive, often costing hundreds of thousands of dollars. Settlements resolve disputes for a fraction of that cost.

  • Time Savings: Trials can take years; settlements can be reached in weeks or months.

  • Certainty: Trials carry risks. A settlement gives you more control over the outcome.

  • Confidentiality: Many settlement terms remain private, which helps protect your brand’s reputation.

What Trademark Infringement Settlements Often Include

  • Cease Use Agreements: The infringer agrees to stop using the disputed mark.

  • Licensing Deals: In some cases, the infringer pays to continue using the mark under agreed terms.

  • Monetary Compensation: Payment for lost sales, damages, or profits gained.

  • Geographic or Market Restrictions: Each party may agree to operate in different markets to avoid conflict.

What Copyright Infringement Settlements Often Include

  • Removal of Infringing Content: Websites, ads, or products are taken down.

  • Monetary Damages: Compensation for actual damages or statutory damages.

  • Licensing or Royalty Agreements: Sometimes the infringer becomes a paying licensee.

  • Non-Disclosure Clauses: Protecting sensitive details of the agreement from public view.

When Settlement Is the Best Option

  • The infringement is accidental or minor.

  • You want to preserve a business relationship.

  • The cost of litigation outweighs potential damages.

  • You want to stop infringement quickly without long delays.

When Litigation May Be Better

  • Willful or large-scale infringement.

  • Counterfeit goods or significant financial harm.

  • A need to set a public example to deter others.

Conclusion
Settlements are a practical and common resolution to trademark and copyright infringement disputes. They allow businesses to protect their intellectual property while avoiding the costs and risks of trial. At Trestle Law, we help clients negotiate strong settlement agreements—or pursue litigation when necessary—to protect what they’ve built.

Contact us today to schedule a consultation and discuss whether settlement or litigation is right for your case.

Attorney Advertising Notice and Disclaimer

This blog is intended for informational purposes only and does not constitute legal advice. Viewing or relying on this content does not create an attorney-client relationship with Trestle Law APC or its attorneys. Every situation is different, and you should consult with a qualified attorney licensed in your jurisdiction before making legal decisions.

Trestle Law APC is a California law firm. Attorney Kristen Roberts is licensed to practice law in California. This communication may be considered attorney advertising under the California Rules of Professional Conduct. Past results do not guarantee future outcomes.

Kristen Roberts

Kristen is a California-based intellectual property attorney who helps business owners build a bridge from their brands to their bank accounts.

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Willful vs. Innocent Infringement: Why It Matters in IP Lawsuits