Reverse Payment [Trademark] Law and Legal Definition

Reverse payment refers to transfer of consideration from a patent holder to an infringer for the infringer's cease and desist. In patent infringement cases, usually payment flows from the alleged violator to the patent holder either by consent or pursuant to damages as set by the court.

Following is a case law defining reverse payment. ‘Payments pursuant to the settlement of a patent suit such as those required under the Settlement Agreement are referred to as reverse payments’ because, by contrast, typically, in patent infringement cases the payment flows from the alleged infringer to the patent holder. [Joblove v. Barr Labs., Inc. (In re Tamoxifen Citrate Antitrust Litig.), 466 F.3d 187, 205 (2d Cir. N.Y. 2006) 3.].