In the ever-evolving landscape of intellectual property (IP) litigation, Non-Practicing Entities (NPEs) continue to play an active role and remain on the radar of the world’s largest patent holders. Through new research, Clarivate sheds light on the latest NPE litigation data, unveiling novel trends and insights.
The 2018 NPE report: A prelude
In 2018, Clarivate™ published a groundbreaking NPE Report that uncovered a dual trend: NPE litigation was not only extensive in the U.S. but also gaining traction in European courts. The driving force behind this phenomenon was clear—NPEs sought out forums where they could maximize the monetization of their patents. Litigation became both a means and leverage for these entities. But what factors contributed to this shift, and how did it impact the global IP landscape?
The U.S. Patent reform and its ripple effect
Our hypothesis centered on the impact of patent reform and legislative changes in the U.S. These measures were designed to curb the rising tide of NPE-initiated lawsuits. As the U.S. tightened its patent enforcement regulations, NPEs looked beyond American shores for more favorable battlegrounds. Europe, with its diverse legal systems and patent-friendly jurisdictions, emerged as a prime destination. Among these, Germany stood out as a hotspot for NPE litigation.
2024: A new chapter in NPE litigation
Fast forward to 2024, and the NPE landscape has continued to evolve. Clarivate presents the 2024 Non-Practicing Entity Global Litigation Report, a comprehensive analysis that follows up on the 2018 study and delves into the current state of NPE-related litigation worldwide.
- Turning litigation data into observable trends
Our report revisits the trends observed in 2018. Have NPEs persisted in their quest for alternative forums outside the U.S.? Are European courts still witnessing a surge in NPE-initiated infringement cases? The data speaks volumes, and we dissect the numbers to provide a clear picture. - NPEs and regional litigation
By examining litigation patterns across the globe, we shed light on the rise of NPE actions in specific regions within Europe, Asia, and beyond. After having almost zero activity until 2017, Mainland China appears to be becoming a destination of choice for NPEs outside the U.S. In contrast, other key regions witnessed a decrease in NPE infringement cases. - The most assertive NPEs
We also identify the top ten most active NPEs in the U.S. and Europe. Based on data from the past 12 years, we see the top 10 NPEs account for 50% of the total NPE initiated infringement cases in the U.S. An even stronger story emerges in Europe with the top 10 NPEs accounting for 72% of the total NPE initiated cases. - The most common defendants
In contrast, the top 10 defendants account for less than a quarter of the total number of NPE infringement cases brought against operating companies in the U.S. Looking exclusively at EU litigation data, it appears that infringement actions filed by NPEs are mainly concentrated on a small number of larger companies. - Infringement outcomes: Global differences
Our report further examines outcomes of infringement cases initiated by NPEs. By comparing cases filed by NPEs to those filed against NPEs, we see dramatic differences in the outcomes of these cases by jurisdiction. In the U.S., patents belonging to NPEs are considered as infringed in less than one third (27%). However, in Germany, patents belonging to NPEs are considered infringed in more than two thirds (62%) of all cases.
Navigating the NPE Terrain
As NPEs continue to shape the IP landscape, informed decisions are crucial. The 2024 Non-Practicing Entity Global Litigation Report equips you with actionable insights.
To help you better understand the data behind our report, we recently hosted a webinar, NPEs in Focus. Now available on-demand, the webinar brings together Clarivate experts to explore key findings in the report and share how Darts-ip data can be used to learn more.
Watch the webinar: NPEs in Focus: Examining global non-patent entity litigation
About Darts-ip™
Our research and methodology rely on Darts-ip™ patent case data, covering major jurisdictions worldwide. With over 2.3 million patent cases from 140 countries, it provides a panoramic view of global patent litigation. From court decisions to litigation trends, Darts-ip empowers our understanding of NPE dynamics.
Learn more about Darts-ip, the leading source of global patent case data, litigation trends and insights.
