Transport Zone Update: NPE litigation rate has nearly doubled since 2019

Since 2019, NPE-related Transport litigation has jumped from 41% to 77% overall in this zone.

While the overall zone litigation is estimated to slightly decrease from 2020, NPE-related litigation has increased by 6% to 77%, reaching 2015 and 2016 levels.

Transport manufacturers continue to be the main targets of litigation. These manufacturers comprise 62% of all first-named defendants. Manufacturers are defined as companies that are OEMs such as Toyota, Honda, Ford, and Tesla. Dealerships are defined as a company that primarily sells for the manufacturer. These would include Kinsel Ford and Zimbrick Honda. Suppliers are companies such as Denso,  Bosch Automotive, ABB, and even Uber that provide components or services. 


Analyzing the data, first-named defendants there appears to be a renewed interest in manufacturers, rather than just suppliers. For instance, a case in South Carolina names Motorola as the first-named defendant. However, several manufacturers and dealers appear on the complaint as well, such as FCA, Ford Global Technologies, LLC, Big O Dodge Chrysler Jeep Ram, Kevin Whitaker Chevrolet, Fairway Ford Lincoln of Greenville, and General Motors.

The top-five plaintiffs in 2021 are all NPEs and account for 73% (25 of 34) of litigation cases brought so far this year. The top-five plaintiffs are:

Top-5 Plaintiffs Cases
Blitzsafe Texas (NPE) 8
Display Technologies (NPE) 5
Typhoon IP (NPE) 4
MicroPairing Technologies (NPE) 4
Arigna Technology (NPE) 4

They appear to target Manufacturers rather than Suppliers. Companies like BMW, GM, Porsche, Honda, and Namsung saw themselves as first-named defendants twice in 2021. But it appears that NPEs are attacking any Manufacturer with AB Volvo, Daimler, Ford, Harley Davidson, Mazda, Mitsubishi, Toyota, and Volkswagen with 1 assertion against.

DEFENDING AGAINST NON-NPEs

It's increasingly more important that manufacturers bolster their patent portfolios as litigation increasingly becomes focused on vehicle connectivity and electronics as many larger companies such as Nokia  and others have begun to assert. Companies can improve their portfolio using proprietary tools such as Unified’s LPIX to choose more successful counsel. 


For instance, art units in 3660’s deal with Computerized Vehicle Controls and Navigation. Art Unit 3661 is by far the most utilized art unit with 23,423 applications and a 86.6% allowance rate. When looking at a specific law firm, Sughrue Mion is the highest performing in terms of LPIX. They have above the art unit average of 89.5% and have handled 198 applications with a low pendency time. The top-10 performing law firms can be seen below.

Law Firm LPIX Allowance Rate #Apps Pendency Narrowness
Sughrue Mion PLLC 100.00% 89.50% 198 1.9851 22.5072
Oblon, McClelland, Maier & Neustadt, LLP 95.20% 85.60% 202 2.2204 21.441
Oliff PLC 94.80% 84.90% 249 2.3176 23.7611
Mintz Levin 86.90% 87.60% 129 2.2743 18.4138
Norton Rose Fulbright 85.50% 95.20% 95 2.3669 16.3289
Crowell & Moring LLP 81.90% 87.00% 133 2.2345 21.4216
Knobbe Martens Olson & Bear LLP 78.90% 91.00% 99 1.6961 23.1912
Fish & Richardson 76.90% 88.90% 96 2.3322 18.479
Brooks Kushman 75.50% 83.20% 129 2.7086 19.056
BakerHostetler 75.00% 92.10% 71 2.094 16.7505

When collectively looking at all the 3660’s art units, the top-20 law firms can be seen below.

Law Firm #Apps LPIX Rank
Sughrue Mion PLLC 1326 100.00% 1
Oblon, McClelland, Maier & Neustadt, LLP 1303 100.00% 2
Oliff PLC 1488 100.00% 3
Mcdonnell Boehnen Hulbert & Berghoff LLP 541 100.00% 4
Mintz Levin 819 86.90% 5
Norton Rose Fulbright 671 85.50% 6
Harness, Dickey & Pierce PLC 928 82.10% 7
Crowell & Moring LLP 773 81.90% 8
Knobbe Martens Olson & Bear LLP 562 78.90% 9
Global IP Counselors LLP 424 77.50% 10
Hauptman Ham LLP 341 77.20% 11
Fish & Richardson 538 76.90% 12
Dinsmore & Shohl LLP 519 75.50% 13
Brooks Kushman 824 75.50% 14
BakerHostetler LLP 384 75.00% 15
Mcdermott Will & Emery LLP 563 74.30% 16
Morgan Lewis & Bockius LLP 496 73.00% 17
Cantor Colburn LLP 577 72.80% 18
Foley & Lardner LLP 542 72.60% 19
Kilpatrick Townsend & Stockton LLP 387 72.30% 20

LPIX not only allows to see how a particular art unit is handled by a law firm, but is able to see performance collectively to allow companies to make smart decisions regarding their portfolio prosecution


METHODOLOGY

Unified looked at all major Transport manufacturers and the top 10 Transport suppliers by revenue since 2012.

Total number of reported cases can vary. Unified made its best attempt to eliminate mistaken or duplicative filings.

Statistics include litigations initiated by NPEs or Declaratory Judgments (DJs) initiated by operating companies against NPEs.

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

LEGEND

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.

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.


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