Unified Patent’s 2014 Litigation Report

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Figure 1: The number of 2014 patent litigation filings approached 5000, the third highest count ever. Patent suits have risen dramatically since 2010, disproportionately impacting some sectors and technologies.

Patent litigation across the past 5 years2010201120122013201402000400060008000
xCases
20102,641
20113,499
20125,378
20136,030
20145,002

Figure 2: 63% of 2014 patent litigation was High-Tech related.

Patent Litigation by SectorHigh-TechMedicalOther20.8%15.9%63.3%
Cases
0
High-Tech3,165
Medical797
Other1,040

Figure 3: Litigation and NPE filings in Q4 2014 were similar to Q3. In Q4, 56% of all litigation was NPE-generated.

Patent Litigation in 2014Non-NPENPEQ1Q2Q3Q4040080012001600
Non-NPENPE
00
Q1494779
Q2481992
Q3491649
Q4492622

Figure 4: 61% of all cases in 2014 were NPE-related.

Cases Filed by EntityNPEOperating CompanyOther Entity38.6%60.8%
Cases
0
NPE 3,042
Operating Company1,933
Other Entity27

Figure 5: 82% of all 2014 NPE cases were filed by Patent Assertion Entities (PAEs).

NPE BreakdownIndividualNPE (PatentAssertion Entity)NPE (Small Company)10.8%81.9%
EntitiesCases
Individual329
NPE (Patent Assertion Entity)2,492
NPE (Small Company)221

Figure 6: 86% of all NPE related litigation in 2014 was in the High-Tech sector.

NPE Litigation by SectorHigh-TechMedicalOther9.1%86.2%
Cases
0
High-Tech2,623
Medical143
Other276

Figure 7: 83% of all High-Tech sector litigation in 2014 was NPE related vs. 18% in Medical and 27% in Other.

Comparison of Total and NPE Litigation by SectorNPEOp.Co.TechMedicalOther01000200030004000
Op. Co.NPE
00
Tech5422,623
Medical654143
Other764276

Figure 8: High-Tech was the only sector where a majority of 2014 cases were NPE-related.

Patent Litigation by Sector and EntityOtherMedi…TechNPEOperatingCompanyOther Entity01000200030004000
TechMedicalOther
000
NPE2,623143276
Operating Company530645758
Other Entity1096

Figure 9: 83% of 2014 High-Tech litigation was NPE-related.

Percentage of NPE Cases in High TechNPENon-NPE17.1%82.9%
Cases
0
NPE2,623
Non-NPE542

Figure 10: 29% of all 2014 patent litigation cases were filed in E.D. Tex., and 94% of those were NPE-related.

Total and NPE Cases by VenueNPEOp.Co.E.D.Tex.D.Del.C.D.Cal.D.N.J.N.D.Cal.Others0500100015002000
Op. Co. NPE
00
E.D.Tex.831,353
D.Del.315620
C.D.Cal.183139
D.N.J.20186
N.D.Cal.94157
Others1,084687

Figure 11: 24% of 2014 NPE related cases were filed against SMEs

NPE Cases Filed Against Small or Medium EnterprisesNPEs against SMEsNPEs against Non-SMEs24.2%75.8%
Cases
0
NPEs against SMEs733
NPEs against Non-SMEs2,297

Figure 12: 80% of 2014 High-Tech litigation involved NPEs asserting against large companies.

High-Tech Litigation Against Small or Medium EnterprisesNPEs against SMEsOp. Co. against SMEsNPEs against Non-SMEsOp. Co. against Non-SMEs16.6%9.2%66.6%
xCases
NPEs against SMEs523
Op. Co. against SMEs241
NPEs against Non-SMEs2,100
Op. Co. against Non-SMEs289

Figure 13: 50% of 2014 Other litigation involved operating companies asserting against SMEs.

Other Cases Against Small or Medium EnterprisesNPEs against SMEsOp. Co. against SMEsNPEs against Non-SMEsOp. Co. against Non-SMEs14%23%12.8%50.2%
xCases
NPEs against SMEs145
Op. Co. against SMEs520
NPEs against Non-SMEs132
Op. Co. against Non-SMEs238

Figure 14: 64% of 2014 Medical litigation involved operating companies asserting against large companies.

Medical Cases Filed Against Small or Medium EnterprisesNPEs against SMEsOp. Co. against SMEsNPEs against Non-SMEsOp. Co. against Non-SMEs19.6%63.6%
xCases
string0
NPEs against SMEs65
Op. Co. against SMEs152
NPEs against Non-SMEs65
Op. Co. against Non-SMEs493

Figure 15: eDekka was 2014's largest individual NPE filer.

Top Five NPEseDekka LLCOlivistar LLCHawk Tech…Logitraq, LLCPenovia LLC04080120160
xcases
eDekka LLC130
Olivistar LLC62
Hawk Technology Systems, LLC59
Logitraq, LLC58
Penovia LLC49

Definitions

Technology Sectors: Figures 2, 6, 7, 8, and 9.

High Tech = Software, Hardware, Networking, etc.
Medical = Pharmaceuticals, Medical Devices, Health Related Technologies, etc…
Other = Mechanical, Packaged Good, Sporting Equipment, etc…

Entities: Figures 3-15

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 of controlled by an individual inventor who is primarily focused on monetizing inventions patents by that individual inventor.
SME = Companies that make less than $200 million in annual revenue.

Venue in Federal District Court: Figure 10.

E.D. Tex. = Eastern District of Texas
D. Del. = Delaware
C.D. Cal. = Central District of California
D.N.J. = New Jersey
N.D. Cal. = Northern District of California

Methodology

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 through all available means, such as court filings, public documents, and product documentation.
Unified strives to determine an SME's revenue through all available means, such as court filings, public documents, and product documentation.