New Clarivate Report Reveals that the U.S., Germany and Mainland China have the most Non-Practicing Entity Litigation

Rhea-AI Summary

Clarivate released the 2024 Non-Practicing Entity (NPE) Global Litigation Report, detailing NPE enforcement activities and patent challenges globally. The U.S., Germany, and Mainland China lead in NPE litigation cases, with the U.S. accounting for 97.2% from 2018-2023, Germany 1.8%, and China 0.4%. The report notes a 43% decrease in U.S. NPE cases, a 600% increase in China, and a decline in Germany from 2018. The report found that overall NPE infringement actions declined globally from 2012-2019 and stabilized at around 2,000 cases per year starting in 2020. It also highlights that NPEs face higher patent invalidation rates compared to non-NPEs, indicating potential patent quality issues.

Positive

• Clarivate released a comprehensive and detailed report on global NPE litigation trends, aiding informed decision-making.
• The report identifies the U.S., Germany, and Mainland China as key regions for NPE litigation, providing valuable geographical insights.
• NPE infringement cases in the U.S. decreased by 43% from 2012-2017 to 2018-2023, indicating a potential reduction in patent litigation.
• NPE infringement cases have stabilized globally at around 2,000 per year since 2020, suggesting a predictable litigation landscape.
• NPEs are focusing heavily on Information and Communication Technologies, accounting for a significant portion of their patent assertions.

Negative

• Mainland China experienced a 600% increase in NPE litigation cases, indicating a significant rise in patent-related disputes.
• Patents belonging to NPEs are invalidated more frequently than those of non-NPEs, reflecting potential quality issues with NPE patents.
• Germany has seen a decline in NPE litigation since 2018, which may indicate reduced activity or challenges in this market.

Infringement declined globally from 2012 to 2019

LONDON, May 16, 2024 /PRNewswire/ -- Clarivate Plc (NYSE: CLVT), a leading global provider of transformative intelligence, today released the 2024 Non-Practicing Entity Global Litigation (NPE) Report to analyze NPE enforcement activities and their patent validity challenges across the globe. The report revealed that the United States, Germany and Mainland China are the three countries and regions with the most infringement cases filed by NPEs.

For this report, NPE is defined as an independent legal organization which owns or benefits from patent rights but does not sell or manufacture goods or provide goods-related services. Using the Clarivate Darts-ip^TM database of patent case law, this report showed that among the countries and regions where most of infringement cases are filed by NPEs between 2018-2023, the U.S. accounts for 97.2% of the total, while Germany and Mainland China count for 1.8% and 0.4% respectively. However, the growth momentum differs in the top three countries when comparing 2012-2017 to 2018-2023. There was a 43% decrease in the number of U.S. NPE infringement cases, while the number in Mainland China increased 600% and Germany saw a strong decline starting in 2018.

This report showed that during 2012-2017, there was an undeniable trend of increasing patent validity challenges overall and of patent validity challenges filed against NPEs worldwide. While overall patent validity challenges slightly increased during 2018-2023, the number of patent validity challenges filed against NPEs worldwide slightly decreased.

Francois Neuville, Senior Vice President, Brand IP, Clarivate, said, "NPEs should now be considered as part of the patent ecosystem. These entities seek out courts where they can further monetize the value of their IP assets, using litigation as both leverage and means. As NPE litigation continues to evolve worldwide, analyzing trends using enriched data and insights can help support informed decisions for the future."

Other key findings in the report include:

• Overall, infringement action filed by NPEs declined globally from 2012 to 2019. Starting in 2020, NPE infringement cases began to stabilize at around 2,000 per year.
• NPEs are well known for being active in Information and Communication Technologies (i.e. digital communication, telecommunications, computer technology and audio-visual technology). These technologies account for 64% of the patents asserted by NPEs in the U.S. and for 74% of the patents asserted by NPEs in EU.
• Patents belonging to NPEs are being invalidated at greater frequency than non-NPEs. This may indicate that the NPEs are facing patent quality challenges.

Learn more about NPE litigation worldwide trends here.

Methodology
For this report, we consider NPEs to be independent organizations (legal entities) which own or benefit from patent rights but do not sell or manufacture goods or services associated with them (i.e., non-operating companies) and which have an active (offensive) assertion or litigation role as plaintiffs towards the enforcement of their patent rights. Read our full methodology here.

About Clarivate
Clarivate™ is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in the areas of Academia & Government, Intellectual Property and Life Sciences & Healthcare. For more information, please visit www.clarivate.com

Media contact
Jack Wan
External Communications Director
newsroom@clarivate.com

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SOURCE Clarivate Plc

FAQ

What did the Clarivate 2024 NPE Global Litigation Report reveal about NPE litigation?

The report revealed that the U.S., Germany, and Mainland China are the top regions for NPE litigation, with the U.S. accounting for 97.2% of cases from 2018-2023.

How has NPE litigation trended globally according to Clarivate's report?

NPE litigation declined globally from 2012-2019 but stabilized at around 2,000 cases per year starting in 2020.

Which regions saw the most significant changes in NPE litigation cases?

The U.S. saw a 43% decrease, while Mainland China experienced a 600% increase in NPE litigation cases from 2012-2017 to 2018-2023.

What percentage of NPE litigation cases in the U.S. involve Information and Communication Technologies?

64% of patents asserted by NPEs in the U.S. are related to Information and Communication Technologies.

What challenge do NPEs face compared to non-NPEs?

NPEs face higher rates of patent invalidation, indicating potential quality issues with their patents.