The Supreme Court issued a unanimous decision in the Halo v. Pulse case today rejecting the rigid rules that the Federal Circuit have been using in deciding enhanced damages in patent cases. This will have very important implications on the willingness or un-willingness of companies accused of patent infringement to seek negotiated settlements. As we try to lessen the impact of patent trolls in the economy through changes in the patent law and USPTO procedures we have weakened some aspects of the US patent law and made it easier to invalidate issued patents –patents that perhaps should not have been issued in the first place. Without arguing about the pros and cons of the patent reform, what we see empirically is that the accused infringers do not take licenses to patent unless there is litigation or at the least a very credible prospect of litigation. There is simply no incentive to take a license otherwise.