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Despite Reforms, Patent Cases Filed by NPEs Rose in 2015

By Lisa Shuchman
January 31, 2016

Despite changes in patent law expected to curb the filing of lawsuits by non-practicing entities, NPE litigation increased significantly in 2015.

A new study by RPX Corp., which helps companies reduce the cost and risk associated with NPE litigation, reports that NPEs filed 3,604 cases last year, almost 25% more than the 2,891 cases filed in 2014 and slightly less than the 3,733 filed in 2013.

IP practitioners believed that moves by Congress, the U.S. Supreme Court and the USPTO in recent years would help reduce the number of patent suits filed by NPEs, especially those filed by patent trolls.

The America Invents Act of 2011 established a system where companies could challenge the validity of issued patents at the PTO's Patent Trial and Appeal Board rather than in district court, offering a faster and less expensive way to kill weak patents often asserted by NPEs in district court.

The Supreme Court case, Alice v. CLS Bank International, 134 S. Ct. 2347 (2014), made it more difficult for companies to defend software and business method patents. In addition, the High Court has given district court judges more discretion in awarding attorney fees in patent cases, a move that was expected to deter the filing of some of the more frivolous patent lawsuits.

But these changes were not enough to reduce the number of NPE filings last year.

“This combination of factors might have seemed insurmountable to NPEs; yet clearly, these and other defendant-friendly developments failed to slow the overall rate at which new lawsuits were filed in 2015,” the report said.

New court procedural rules that took effect Dec. 1 prompted a surge in NPE suits filed just before the change was implemented.

' Lisa Shuchman, Corporate Counsel

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