Overview

The number of 2019 patent litigation involving Non-Practicing Entities (NPEs) increased by 4% compared to 2018, even as overall litigation dropped slightly and PTAB filings decreased significantly.

Highlights:

The number of new PTAB proceedings (IPRs, CBMs, and PGRs) was down 23% compared to 2018. Meanwhile, the PTAB’s institution rate in IPRs remained steady with trial being instituted in 62% of proceedings in 2019.
District court patent litigation was down 3% compared to 2018. However, in 2019 NPEs filed 1,944 new district court cases, slightly higher than 2018.
Delaware District Court (DED) patent litigation increased 16% compared to 2018. DED was also the most active venue for NPE disputes which account for 64% of infringement contentions filed there.
Unified ended 2019 as the 3rd most frequent PTAB petitioner (43) and filed against more NPEs than any other entity. RPX filed no independent petitions in 2019 and 2 total.

Figure 1: 1,322 new America Invents Act (AIA) proceedings were filed in 2019, the lowest number of new petitions since the PTAB came into effect. View all District Court and PTAB litigation on our Portal.

Figure 2: Approximately 861 new district court litigations were filed in Q4 2019, including 491 NPE-initiated disputes.

Figure 3: Although the PTAB remains the most popular venue for patent disputes overall, the Delaware District Court is the most popular venue for NPEs in 2019. The Eastern District of Texas, on the other hand, has seen significantly less activity as only the 4th most popular venue for patent litigation.

Figure 4: The majority of new patent cases involve the High Tech industry. View High-Tech litigation on Unified’s Portal.

District Court

Figure 5: NPEs are responsible for over 1,944 new patent cases (over 58% of all patent litigation) in 2019, a slight increase compared to 2018. Thus, even as patent litigation decreased from 2018 to 2019, the proportion of new cases attributed to NPEs has increased.

Figure 6: Nearly 60% of all new district court patent cases involve High-Tech companies.

Figure 7: NPE activity in the High-Tech sector alone contributes more new patent infringement cases than all non-NPE patent litigation combined. View High-Tech litigation on Unified’s Portal.

Figure 8: About 90% of all High-Tech litigation in 2019 is attributed to NPE assertions against High Tech companies. View all 2019 District Court litigation on Unified’s Portal.

PTAB Disputes

Figure 9: The PTAB received 1,322 new petitions in 2019 — the lowest number of new filings in a single year since 2014. Meanwhile, the Board’s institution rate in inter partes reviews remained steady at 62%. More details for these PTAB proceedings are available on Unified’s Portal.

Figure 10: Consistent with district court proceedings, approximately 60% of petitions filed in 2019 involved High-Tech companies.

Figure 11: Approximately 56% of all AIA challenges filed in 2019 that involved High-Tech companies related to NPE-controlled patents. Explore this data further on Unified’s Portal.

Figure 12: In 2019, IPRs were the most popular post-grant proceeding at the PTAB.

Figure 13: Unified was the 3rd most frequent petitioner at the PTAB in 2019. Apple was the most frequent petitioner with 71 petitions filed. View all of Unified’s cases on the Portal.

Figure 14: 7 of the top 10 most frequently challenged patent owners are well-known patent licensing entities.

Definitions

Sectors

High-Tech = Technologies relating to Software, Hardware, and Networking
Medical = Technologies relating to Pharmaceuticals, Medical Devices, Health Related Technologies
Other = Technologies relating to Mechanical, Packaged Goods, Sporting Equipment and any other area outside of high-tech and medical patents.

Entities

Non Practicing Entity (NPE) = Company which derives the majority of its total revenue from Patent Licensing activities.
Operating Company or Op. Co. = Company which derives most of its total revenue from Product Sales or Services. Could be an SME or a large company.
Other Entity = Universities / Non-Profits / Government / Non-Governmental Organizations (NGOs)
NPE (Patent Assertion Entities) = Entity whose primary activity is licensing patents and acquired most of its patents from another entity
NPE (Small Company) = Entity whose original activity was providing products and services, but now is primarily focused on monetizing its own patent portfolio.
NPE (Individual) = Entity owned or controlled by an individual inventor who is primarily focused on monetizing inventions patents by that individual inventor.

Venues

CACD = Central District of California
CAND = Northern District of California
DED = Delaware
NJD = New Jersey
NDIL = Northern District of Illinois
SDNY = Southern District of New York
TXED = Eastern District of Texas
TXWD = Western District of Texas

Methodology

This report includes all District Court and PTAB litigations between January 1, 2015 and December 31, 2019.

Total number of reported cases can vary based on what is included. Unified made its best attempt to eliminate mistaken, duplicative, or changes in venue filings, hence the totals may vary slightly compared to other reporting entities. Statistics include litigations initiated by NPEs or Declaratory Judgments (DJs) initiated by operating companies against NPEs.

Unified strives to accurately identify NPEs through all available means, such as court filings, public documents, and product documentation.