UPDATE: Are Patent Trolls Really on the Rise?

(Based on revised data, Klemchuk LLP attorneys felt the need to update a previously posted blog. Original posting can be found at: KK LLP Blog)Actually, yes.

The authors of the GAO paper, Effects of Patent Monetization Entities on US Litigation, recently provided us with some revised data. The authors recently concluded that patent trolls accounted for approximately 40% of all patent cases filed in 2011.

Relying on data contained in a draft version of their paper, we concluded that patent troll litigation may have actually decreased in 2008, 2009, and 2010. We reached this conclusion based on the author's analysis of the number of defendants sued by patent trolls in each of those years.

The author's revised data paints a surprisingly different picture. The number of defendants sued by patent trolls in 2007 accounted for 23% of all patent litigation defendants. The ratio decreased to 16% in 2008.

But in 2009, the number of defendants sued by patent trolls increased to 36% of all patent litigation defendants. Surprisingly, in 2010, patent troll defendants accounted for 49% of all patent litigation defendants. In 2011, it was 39%.

But it gets more interesting when you combine patent trolls, individuals, and trusts, as the authors did in their original analysis that yielded the surprising 40% figure.

From 2007 to 2011, the number of defendants sued by patent monetizers (trolls, individuals, and trusts) actually increased from 29% to 59% of all patent litigation defendants:

• 2007: 29%

• 2008: 29%

• 2009: 51%

• 2010: 53%

• 2011: 59%

Based on the revised data, it appears that the America Invents Act did not skew the author's results as we initially suspected. To the contrary, the author's results (based on the number of patent lawsuits filed) may actually understate the true increase in patent troll litigation over the past 3 years.

For more information, please visit our patent service page.

Klemchuk LLP is an Intellectual Property (IP), Technology, Internet, and Business law firm located in Dallas, TX.  The firm offers comprehensive legal services including litigation and enforcement of all forms of IP as well as registration and licensing of patents, trademarks, trade dress, and copyrights.  The firm also provides a wide range of technology, Internet, e-commerce, and business services including business planning, formation, and financing, mergers and acquisitions, business litigation, data privacy, and domain name dispute resolution.  Additional information about the IP law firm and its IP law attorneys may be found at www.klemchuk.com.

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