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cannot afford costly litigation in hopes of obtaining an early victory in court throughsummary judgment or a settlement. After getting a more vulnerable defendant to take alicense, the NPE hopes to encourage other companies to submit to licenses without theneed for litigation.NPEs tend to bring lawsuits in federal district courts that are seen as more friendly to patentowners, such as the Eastern District of Virginia, the District Court of Delaware, the EasternDistrict of Texas, and the Western District of Wisconsin. 15These districts tend to haveshorter time-to-trial, higher success rates for patent owners and greater median damageawards. 16More and more NPEs are suing the retail sellers of products that they claiminfringe, not just the manufacturers. This is permissible because under U.S. Patent Law,patent owners can sue any party that “makes, uses, offers to sell, or sells any patentedinvention”. 17Many smaller retailers unaccustomed to involvement in patent litigation areoften more likely than technology companies to agree to a license early on to avoid theuncertainty and unpredictability of a patent trial. NPEs are aggressively enforcing softwareand business method patents involving on-line shopping technologies and interactivenavigation features and mobile applications that permit retailers to interface with customers.A common practice for NPEs is to blanket businesses or manufacturers with cease anddesist letters before filing suits. These letters often contain general allegations ofinfringement without specifying how exactly the service or product is infringing the patent.15 PricewaterhouseCoopers LLP, 2014 Patent Litigation Study: As Case Volume Leaps, Damages ContinueGeneral Decline 17 (July 2014), http://www.pwc.com/en_US/us/forensic-services/publications/assets/2014-patent-litigation-study.pdf.16 Id.17 35 U.S.C. § 271(a).10951932.2 7

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