PwC Publishes 2010 Patent Litigation Study

PriceWaterhouseCoopers (PwC) recently published its annual 2010 Patent Litigation Study, and this year's publication has some interesting data:

•  Despite a small uptick of granted patents in 2009, the number of filed patent actions dropped to 2,744, a decrease of over 6% from 2008.  This broke a 3-year trend of growth in case filings, since the last drop in 2005.  NPEs are involved in almost 20% of reported decisions


•  Annual median damages continue to hold steady - between 1995 and 2009, median damages ranged between $2.4M to $10.5M.  However, damage awards for NPEs averaged more than triple those for practicing entities since 2001 ($12.9M vs. $3.9M).


•  NPEs continue to be vulnerable to summary judgment - overall, NPEs have a 31% success rate versus 40% for practicing entities.  In instances when a final decision is made at summary judgment, NPEs are successful only 13% of the time (vs. 20% for practicing entities).  However, both have about a 2/3 win rate at trial.


•  NPEs have increased their success rate over the last 4 years.  In 2005, NPEs suffered from a decade-low success rate of 23%.  In 2009, the success rate jumped to 48%.


•  Declaratory judgment actions increase win rates fort alleged infringers.  However, the increased win rate is only significant when the patent holder is an NPE.


•  Despite the large volume of patent cases, median time-to-trial holds steady: 69% of cases reached trial within 3 years from the filing date of the initial complaint.


The Fastest Jurisdictions (Median Time-To-Trial, In Years):

1. ED Virginia -- 0.93
2. WD Wisconsin -- 1.07
3. MD Florida -- 1.71
4. D. Delaware -- 1.89
5. SD Texas -- 2.00
6. ED Texas -- 2.04
7. SD Florida -- 2.27
8. CD California -- 2.28
9. ND Texas -- 2.42
10. D. Minnesota -- 2.45
11. SD New York -- 2.50
12. D New Jersey -- 2.71
13. ND California -- 2.95
14. ND Illinois -- 3.42
15. D. Massachusetts -- 3.64

The Most "Patent Friendly" Jurisdictions:

1. ED Virginia
2. D. Delaware
3. ED Texas
4. MD Florida
5. CD California
6. SD Texas
7. WD Wisconsin
8. ND California
9. ND Texas
10. ND Illinois
11. D Minnesota (tie)
12. D. New Jersey (tie)
13. D Massachusetts
14. SD New York
15. SD Florida

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, you can download a free copy of the PwC study here (link)