The Effects of KSR v Teleflex on Patent Licensing Costs

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The United States Supreme Court recently issued a ruling making it harder to obtain a valid patent or enforce an existing one. The Court essentially raised the bar for “obviousness” by making the criterion, whereby firms demonstrate that their sought patent is not obvious, more restrictive. There are important implications to this ruling for corporations, legal practitioners and legal scholars. This article attempts to model, in simple terms, the impact of KSR International Co. v. Teleflex Inc. on patent licensing costs and demonstrates that patent licensing costs are likely to decrease on average (or in the aggregate) as a result of the ruling.

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