Lex Machina’s Fifth Annual Patent Litigation Year in Review
Lex Machina’s Fifth Annual Patent Litigation Year in Review
Our friends at Lex Machina, recently released the company’s fifth annual Patent Litigation Year in Review report. This report is a wealth of information for those practicing patent law. Below is the company’s announcement and a preview of the helpful information found in the report.“The report examines key 2017 patent litigation trends and provides insights gleaned from quantitative data about federal district court cases, Patent Trial and Appeal Board (PTAB) trials and U.S. International Trade Commission (ITC) investigations.‘The Supreme Court’s decision on TC Heartland v. Kraft dramatically changed the landscape of U.S. patent law by ending the dominance of Judge Rodney Gilstrap and the Eastern District of Texas and leveling the playing field for defendants,’ said Owen Byrd, General Counsel and Chief Evangelist at Lex Machina. ‘Practicing patent law is now a whole new ballgame, with new districts, judges, law firms and attorneys rising to prominence – all of which underscores an even greater need for legal analytics to understand the behaviors and track records of opposing attorneys and presiding judges.’Overall, the Eastern District of Texas (E.D. Tex.) remained the top court for new patent case filings in 2017 (866 cases) followed closely by the District of Delaware (D. Del.; 777 cases). However, compared to last year, the TC Heartland v. Kraft decision caused new case filings in E.D. Tex. to fall 48% (from 1,662 cases in 2016) and surge 71% in D. Del. (from 454 cases).
Cases, PTAB Trials, and ITC Investigations; screenshot courtesy of Lex Machina.
New Cases: New patent case filings declined 10% over last year to 4,060 cases – the lowest level of new case filings since 2011 and continuing a third straight year of decline.
Judges: For a fifth straight year, Judge Gilstrap (E.D. Tex.) was assigned more patent cases than any other judge. However, his 550 cases in 2017 were less than half of the 1,119 cases assigned to him in 2016.
Top Plaintiffs: This year, 11 of the top 15 plaintiffs were high-volume plaintiffs, with Pfizer, Bristol-Meyers Squibb, Biogen and Biogen International completing the list.
Top Defendants: Teva Pharmaceuticals unseated Samsung, the top defendant in 2015 and 2016. Of the top 10 defendants, four were pharmaceutical companies (Teva, Mylan, Aurobindo and Sandoz) and six were technology companies (Samsung, Apple, LG, Amazon and two Chinese multinationals – ZTE Corporation and Huawei Device USA).
Damages: 2017 saw the award of a total of $763 million in reasonable royalty damages and a total of $284 million in lost profits damages. Compensatory damages remain low, with damages awarded in around 2% of the terminated cases filed since 2000.
Abbreviated New Drug Application (ANDA): Case filings increased 29% in 2017, reversing the significant decline experienced in 2016.
PTAB: IPR petitions have continued to decline from a peak of 548 petitions in Q1 2017 to only 356 in Q4, possibly correlated with uncertainty stemming from the upcoming Supreme Court case, Oil States Energy Services, LLC v. Greene’s Energy Group LLC.
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