Reverse payment patent settlement

When different companies make things, they usually try to get a patent for their invention. A patent is like a special permission to be the only one who can sell that thing for a certain amount of time. But sometimes, companies end up fighting over patents because they both think they should be the only ones allowed to sell it. They might go to court, and if one company wins, they get to keep their patent and the other company can't sell the thing anymore.

But sometimes, instead of going to court, the companies make a deal with each other. This deal is called a patent settlement. They agree that one company can keep the patent and the other company can't sell that thing anymore. But the other company gets something in return, usually money. It's like paying the other company to not sell the thing.

Now, sometimes, the company that's paying the money might think they shouldn't have to pay so much. They might think the other company should only get a little bit of money or none at all. But the other company might say they won't agree to the patent settlement unless they get a lot of money. So, in the end, they come to an agreement that both sides can accept.

This agreement where one company pays the other company is called a reverse payment patent settlement. It's called "reverse" because usually when people settle something, they don't pay each other. But in this case, one company is paying the other company to not sell the thing anymore.