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Patent Assertion Entity Activity

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cases involved a single defendant as a party to ten or more cases brought by plaintiffs affiliated with a<br />

single Responding PAE.<br />

Study PAEs Initiated the Greatest Number of Cases in the Eastern District<br />

of Texas and the District of Delaware<br />

Study PAEs initiated cases in more than 50 different federal judicial districts and also filed complaints<br />

leading to investigations before the ITC. Figure 3.7 shows the districts in which Study PAEs initiated<br />

cases. The Eastern District of Texas and the District of Delaware accounted for the largest share of cases<br />

in the study (53% and 22%, respectively). 227 The five next most popular courts (Northern District of<br />

Illinois; Central, Northern and Southern Districts of California; and Northern District of Texas) together<br />

accounted for 14% of the cases in the study. The remaining 45 districts combined accounted for the<br />

remaining 11% of cases. This is consistent with earlier research. 228<br />

227<br />

The District of Delaware and the Eastern District of Texas were leading jurisdictions of choice for both Portfolio PAEs<br />

and Litigation PAEs.<br />

228<br />

See 2015 PWC PATENT LITIGATION STUDY, supra note 6, at 15 (finding that among patent holders generally, the Eastern<br />

District of Virginia, the District of Delaware, and the Eastern District of Texas were the most active districts between 1995–<br />

2014); Press Release, Admin. Office of the U.S. Courts, <strong>Patent</strong> Cases Rise, With Two Courts Leading the Nation (Apr. 21,<br />

2014), http://www.uscourts.gov/news/2014/04/21/patent-cases-rise-two-courts-leading-nation (finding that “while many<br />

districts show a double-digit increase in the number of patent filings in 2012–2013, the District of Delaware and the Eastern<br />

District of Texas saw the largest growth in patent cases, respectively, at 364 and 275 filings,” and that in 2013, patent cases<br />

“made up 63 percent of the [District of Delaware’s] civil caseload.”); 2013 GAO REPORT, supra note 2, at 24 (finding that<br />

between 2007 to 2011, PMEs “filed more lawsuits in the Eastern District of Texas than other types of plaintiffs”); id. at 2<br />

(noting that a patent monetization entity (PME) is an entity that “buy[s] patents from others for the purpose of asserting them<br />

for profit.” This definition is nearly equivalent to the FTC’s definition of a PAE).<br />

80

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