Only lawyers benefit: Less than 4% of NPE gains reach inventors

The Perryman Group, in a recent economic study commissioned by Unified Edge, has found that less than 4% of the gains from patents sold to NPEs is realized by the original assignee. The findings reveal that selling a patent to an NPE is a highly inefficient mechanism for an original inventor to monetize its patents. The study suggests that other options, such as patent pools, are more likely to ensure that innovators reap the rewards for their contributions to new tech.

Download the economic study by click on the button below:

Nearly $500 million in Economic Benefit From Fewer NHK-Fintiv Denials at the PTAB: Report

The Perryman Group, in a recent economic study commissioned by Unified Edge, has found that over the next 10 years, the total economic benefit of reducing discretionary denials of inter partes review proceedings under criteria such as the NHK-Fintiv rules will lead to an increase in US business activity of $482.1 million, $230.4 million in personal income, and approximately 2,000 job-years of employment.

Source: The Perryman Group

Conversely, any activity that would reinforce or ensconce those rules or other forms of discretionary denial edicts—i.e., a continuation of current practice—could cost the U.S. economy almost $500 million. 

The report, The Potential Economic Benefits of Recent Reductions in Discretionary Denial of Inter Partes Review Based on Criteria such as the NHK-Fintiv Rules (March 2023), was commissioned by Unified Edge in part to explore the as-yet unstudied economic impact the NHK-Fintiv criteria. It researches, organizes, and provides data-backed studies and evidence to further regulatory and policy goals, and works to keep the policymakers up to date and informed on ongoing policies, data, and the regulatory landscape to move the law forward in a just, reasoned, and evidence-based way.

Read the entire report HERE.

Economic PTAB Analysis Demonstrates Post-Grant Challenges Save Litigation Costs Regardless of Stay

Leading Economic Expert finds that PTAB challenges lower total costs and benefit the US Economy almost $2 billion regardless of whether litigation stays are granted

The Perryman Group, in a recent economic study commissioned by Unified, found substantial cost savings in district court cases when there is a copending IPR proceeding regardless of whether a stay is granted or not. 

The study found either outcome resulted in substantial benefits to the U.S. economy by improving business activity $1.87 billion and saving 8,530 job years.  That included where an IPR was conducted parallel to an ongoing district court proceeding, where the Perryman Group estimated the economic benefits of cost savings over the 2014-19 period of $135.4 million in US gross product and 617 person-years of employment. The study also found these benefits are primarily concentrated in the manufacturing sector.

Source: The Perryman Group

The full study is available here, and complements Perryman Group’s earlier work demonstrating the quantifiable economic benefits of the Leahy-Smith America Invents Act’s post-grant proceedings in the years following their implementation.

Source: The Perryman Group

The Perryman Report is part of Unified Patents’ Patent Quality Initiative (PQI), an effort to gather and provide objective data and research demonstrating how lowering patent quality will inevitably lead to even higher cost and risk for U.S. SMEs, inventors, and manufacturers, and can lead to less innovation, fewer U.S. jobs, and a drain on the U.S. economy. Our PQI aims to provide data, studies, and testimonials to give policymakers and practitioners a clear picture of the state of the patent system. More information about our PQI efforts can be found here.

For far greater detail, read the entire report HERE.

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