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10 January 2011

PriceWaterhouseCoopers (PwC) Trends on Patent Litigation USA

PwC have released some interesting facts on patent damages in the USA from 1995 - 2009.

- From 1991 - 2004 the number of patent applications filed had been steadily increasing. This took a dip in 2005, however increased again in 2008 but did not return to its previous peak in 2004. 2009 saw another dip in the number of filings.

- Over the 15-year time period the average damages award was $5.2 million, with the annual median damages award ranging from $2.4 million - $10.5 million. However, there was a tendency for non-practicing entities (NPEs - often referred to as "patent trolls") to receive triple the damages awarded to practicing entities ($12.9m vs. $3.9m).

- There has been an increase in the number of jury trials over the last decade. NPEs have more success at jury than bench trials, with the amount of damages awarded being higher for jury trials (2000s - $10.7 v $0.7).

- The success rate of NPEs was 31% versus a 40% success rate for NPEs. According to PwC this is down to NPEs lack of success at summary judgment. However, both have a 2/3 win rate at trial.

- Time-to-trial, on average, takes just over 2 years. 69% of cases reached trial within 3 years from the date of complaint to date of trial.

 

Top 5 Districts by Overall Success:
1. MD Florida -- 59.1% overall, 80% trial success rate
2. ED Texas -- 55.3% overall, 66.7% trial success rate
3. D. Delaware -- 47.3% overall, 64.5% trial success rate
4. CD California -- 47% overall, 72.4% trial success rate
5. ED Virginia - 45.9% overall, 70.6% trail success rate

Bottom 5 Districts by Overall Success:
1. SD Florida -- 26.5% overall, 42.9% trial success rate
2. D. New Jersey -- 32.2% overall, 57.9% trial success rate
3. SD Texas -- 32.4% overall, 66.7% trial success rate
4. WD Wisconsin -- 32.4% overall, 40% trial success rate
5. ND California -- 33% overall, 71.1% trial success rate

For more details on this, please see PwC's website here.