Patexia Insight 197: Patent Litigation Declined 17% in 2023
We are set to publish the Patent Litigation Intelligence Report later this month. The report provides an extensive range of statistics derived from the 18,191 patent lawsuits filed during the period of the study, from July 1, 2018, through June 30, 2023, using the latest data update of December 1, 2023. Beyond providing insights into filings, case statuses, the most litigated technologies, patents, and the busiest district courts and states for litigation, our report delves deeper into the evaluation of all stakeholders. We've assessed the activity and performance of 30,671 companies involved in these patent lawsuits, which were represented by 3,309 law firms, and 15,808 attorneys, including 415 local counsel.
The following chart summarizes patent litigation activity in district courts over the past six years, including the latest data from 2023:
The annual caseload has been increasing since 2019, reaching its peak in 2021 with 3,953 filings. However, a shift occurred as filing activity began to decrease in 2022, dropping by 4.7%. This downward trend continued into 2023, further declining by 17.5%, reaching a total of 3,108 filings. In the last decade, US patent litigation evolved significantly due to major legislative changes like the America Invents Act (AIA) in 2011, which introduced procedures like Inter Partes Review (IPR) and Post-Grant Review (PGR). Landmark court decisions, such as Alice Corp. v. CLS Bank (2014) and Mayo Collaborative Services v. Prometheus Laboratories (2012), set stricter standards for patent eligibility, particularly affecting software patents and patentable subject matter. Moreover, the dynamic landscape of patent litigation is a culmination of various factors, including economic climates, technological progress, legal tactics, industry-specific patterns, and global influences.
As the PTAB has become the main venue for challenging patent validity and enforcing patent rights, the proceedings filing trends allow an understanding of the types of patents commonly challenged, industries driving these challenges, and the success rates of various strategies employed. In Patexia 44 we have shown how almost 80% of the IPRs are actually filed for defensive purposes in connection with an ongoing patent litigation lawsuit in district court. The following chart shows all PTAB petitions filed over the last six years comprising IPR, PGR, CBM, and DER proceedings:
As illustrated above, IPRs constitute the majority of PTAB proceedings, and their trends significantly influence the overall trajectory of PTAB proceedings. Annual PTAB filings have demonstrated variability over the years, reaching a peak of 1,717 patent challenges initiated in 2018. Subsequently, there was a decline to 1,324 in 2019, followed by an increase to 1,538 in 2020. However, since then, the yearly filings have exhibited a decreasing trend, hitting 1,191 in 2023, reflecting a 12.4% decrease from the 1,360 proceedings filed in 2022.
The United States International Trade Commission (USITC) plays a key role in enforcing trade laws through Section 337 investigations, a mechanism aimed at addressing unfair practices in import trade. Over the past six years, the USITC has been actively engaged in examining complaints related to unfair practices, including intellectual property rights infringement focusing especially on patent infringement. The ruling highlighted the power of Section 337 investigations in regulating import trade practices. The following chart illustrates the filings over the past six years:
The yearly number of ITC investigations initiated has shown a consistent upward trend from 2018 peaking at 79 investigations in 2022. However, in 2023, there was a notable decrease, with 51 filings, 35.4% less than the 79 investigations initiated in 2022, marking a shift in the trend. Nevertheless, the previous year, and notably the last quarter, was marked by several events. One particularly notable decision last year was the ruling that resulted in the ban of Apple Watches. This decision stemmed from a commission opinion that found Apple in violation of patents owned by Masimo, leading to the prohibition of importing certain Apple Watches.
Patexia's journey through the past year has been marked by significant highlights and transformative enhancements. Our commitment to providing an unparalleled user experience led us to initiate a comprehensive website update, encompassing not only an aesthetically pleasing redesign but also an enriched content experience. The profile pages dedicated to companies, law firms, attorneys, and experts now boast a wealth of insights and data covering diverse areas of IP, mirroring the comprehensive scope of our reports — spanning patent litigation, ITC Section 337, ANDA, CAFC, PTAB, patent and trademark prosecution, and soon, trademark litigation.
Expanding our offerings, we've also introduced new pages for each case initiated across various IP venues, as well as for patent applications, publications, and issued patents, alongside trademark applications. All of these pages not only feature publicly accessible data but also include information available to our Concierge Subscribers. In an effort to enhance accessibility, our Concierge subscription model has evolved into modular options, allowing users to selectively unlock specific data on our website.
In a stride towards fostering a more interactive and informative platform, we've introduced attorney reviews. This feature enables attorneys, active in the same IP practice, to review and provide qualitative feedback on their experiences working with or against a particular attorney in a legal matter. In a friendly reminder to all attorneys, Patexia extends an invitation for you to claim ownership of your own profile on our platform. It's a simple process—use your professional email to authenticate your credentials and take charge of curating your professional identity on Patexia.
We are gearing up for an exciting year ahead with the release of eight Intelligence Reports in 2024, including the debut of the much-anticipated Trademark Litigation Intelligence. As one of the benefits for our valued members of Patexia Concierge, we offer access to the Intelligence Reports corresponding to the modules they have subscribed to, as soon as they are published. This ensures that our Concierge members stay ahead of the curve, gaining immediate insights into the latest trends, statistics, and rankings across various domains of intellectual property for better-informed decisions. Here's a glimpse of our publication schedule for the upcoming year:
|
Insight Report |
est. Release Date |
| Patent Litigation Report | Jan 25, 2024 |
| ITC Report | Feb 29, 2024 |
| Patent Prosecution Report | March 28, 2024 |
| Trademark Prosecution Report | April 25, 2024 |
| Trademark Litigation | May 30, 2024 |
| ANDA Litigation Report | August 29, 2024 |
| IPR Report | September 26, 2024 |
| CAFC Report | October 31, 2024 |
Stay tuned as in the following weeks we will dive deeper into the statistics covered in our upcoming Patent Litigation Report and publish different studies conducted with our Analyzer tools covering the litigation and patenting trends of big tech companies.