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 single Responding PAE. Study PAEs Initiated the Greatest Number of Cases in the Eastern District of Texas and the District of Delaware Study PAEs initiated cases in more than 50 different federal judicial districts and also filed complaints leading to investigations before the ITC. Figure 3.7 shows the districts in which Study PAEs initiated cases. The Eastern District of Texas and the District of Delaware accounted for the largest share of cases in the study (53% and 22%, respectively). 227 The five next most popular courts (Northern District of Illinois; Central, Northern and Southern Districts of California; and Northern District of Texas) together accounted for 14% of the cases in the study. The remaining 45 districts combined accounted for the remaining 11% of cases. This is consistent with earlier research. 228 227 The District of Delaware and the Eastern District of Texas were leading jurisdictions of choice for both Portfolio PAEs and Litigation PAEs. 228 See 2015 PWC PATENT LITIGATION STUDY, supra note 6, at 15 (finding that among patent holders generally, the Eastern District of Virginia, the District of Delaware, and the Eastern District of Texas were the most active districts between 1995– 2014); Press Release, Admin. Office of the U.S. Courts, <strong>Patent</strong> Cases Rise, With Two Courts Leading the Nation (Apr. 21, 2014), http://www.uscourts.gov/news/2014/04/21/patent-cases-rise-two-courts-leading-nation (finding that “while many districts show a double-digit increase in the number of patent filings in 2012–2013, the District of Delaware and the Eastern District of Texas saw the largest growth in patent cases, respectively, at 364 and 275 filings,” and that in 2013, patent cases “made up 63 percent of the [District of Delaware’s] civil caseload.”); 2013 GAO REPORT, supra note 2, at 24 (finding that between 2007 to 2011, PMEs “filed more lawsuits in the Eastern District of Texas than other types of plaintiffs”); id. at 2 (noting that a patent monetization entity (PME) is an entity that “buy[s] patents from others for the purpose of asserting them for profit.” This definition is nearly equivalent to the FTC’s definition of a PAE). 80
Figure 3.7: Proportion of Study PAE Cases by Judicial District of Initial Complaint Note: Alaska & Hawaii have no PAE cases, and Puerto Rico and the US Court of Federal Claims have less than 1%. Total PAE cases represented is 3,895. Boundaries of districts from: Hansen, M. E., Chen, J., & Davis, M., United States District Court Boundary Shapefiles (1900–2000), INTER-UNIVERSITY CONSORTIUM OF POLITICAL AND SOCIAL RESEARCH (2015), https://www.openicpsr.org/openicpsr/project/100069/version/V1/view. Portfolio PAEs initiated cases in 16 districts. The District of Delaware was the most popular jurisdiction for Portfolio PAEs, accounting for 44% of cases, followed by the Eastern District of Texas and the Western District of Washington, which accounted for an additional 32% and 9% of cases, respectively. Litigation PAEs initiated cases in 49 different districts with the Eastern District of Texas accounting for 54% of cases followed by the District of Delaware with 21%. No other district accounted for more than 5% of Litigation PAE cases. 81
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Patent Assertion Entity Activity AN
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Table of Contents EXECUTIVE SUMMARY
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Litigation Outcomes................
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Executive Summary and Recommendatio
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Table A.1: Categories of PAEs in FT
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generated royalties of less than $3
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most frequently by Study PAEs, or (
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litigations tended to settle early;
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in a timely manner would help allev
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In December 2015, however, an amend
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Chapter 1: Introduction and Backgro
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corresponded to various types of NP
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PAE’s enforcement of that patent
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In one of the earliest studies, Jam
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defendants that will arise in the l
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entrepreneurship and related invest
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and efficient marketplace for paten
Page 35 and 36: The FTC and the DOJ supported USPTO
Page 37 and 38: the brief observed that the share o
Page 39 and 40: Greater transparency of patent owne
Page 41 and 42: only egregious misconduct, as Justi
Page 43 and 44: In September 2013, the Commission b
Page 45 and 46: were intended to generate a sample
Page 47 and 48: The FTC’s study has two parts. Th
Page 49 and 50: Litigation PAEs: Litigation PAEs ty
Page 51 and 52: licenses. There was little overlap
Page 53 and 54: guaranteed revenue and zero risk. T
Page 55 and 56: agreements exclusively. These agree
Page 57 and 58: Larger Litigation PAEs also used th
Page 59 and 60: determine whether it has already li
Page 61 and 62: epresented as unique docket numbers
Page 63 and 64: Prior to initiating the study, the
Page 65 and 66: FTC examined the frequency with whi
Page 67 and 68: Study PAEs sent demands to relative
Page 69 and 70: from related PAEs may help them neg
Page 71 and 72: Electronic Product Manufacturing”
Page 73 and 74: arely generated license agreements
Page 75 and 76: In addition, four Responding PAEs a
Page 77 and 78: Litigation PAEs and Portfolio PAEs
Page 79 and 80: Table 3.1 provides the distribution
Page 81 and 82: Figure 3.5a: Technology Category of
Page 83 and 84: PAE cases and 44% of Litigation PAE
Page 85: Figure 3.6: Frequency Distribution
Page 89 and 90: portfolios of patents, which typica
Page 91 and 92: manner and extent to which Respondi
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Page 97 and 98: likely seeks to avoid the possibili
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Page 101 and 102: Figure 3.10a could be the result of
Page 103 and 104: Figure 3.11: Number of Licenses Inv
Page 105 and 106: granted licenses to firms operating
Page 107 and 108: Turning to specific assertion behav
Page 109 and 110: The preceding considerations have l
Page 111 and 112: Chapter 4 first describes how Wirel
Page 113 and 114: A Small Number of Targets Received
Page 115 and 116: These percentages suggest that both
Page 117 and 118: worldwide wireless chipset sales du
Page 119 and 120: with 75% of their settlements occur
Page 121 and 122: Wireless Respondents’ Licensing A
Page 123 and 124: Table 4.2: Percentage of Wireless P
Page 125 and 126: license with that entity, whereas P
Page 127 and 128: Most Wireless Licensees Operated in
Page 129 and 130: Conclusion The FTC’s goal in stud
Page 131 and 132: Patent assignments were frequently
Page 133 and 134: Figure 5.1: Size of Patent Holdings
Page 135 and 136: Classification. 309 As of the time
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while USPTO economists estimate tha
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categories were Other Electrical &
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More Than 75% of Study Patents Incl
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Affiliates and Holding Entities, he
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Figure 5.5: Age Distribution of Stu
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eceive more citations than other ca
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1.5 and the median was 0.6, meaning
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Table 5.1: Percentage of Acquired P
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Appendix A: Glossary of Frequently
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“PAE Special Order” means the i
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Appendix B: Methodology Introductio
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contained more than 9,100 variants
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of the dispute as of the end of the
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Affiliates to a single industry. 37
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industry called “Management of Co
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the selected firms meet the FTC’s
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owning 10% or more of its stock.”
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Delaware avoided disclosing any inf
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SPECIFICATIONS A. Identification of
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(2) identify, from the following li
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(2) identify, from the following li
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(a) state the total amount paid in
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(3) did the Firm grant an exclusive
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H. Patent Assertion Information 1.
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Do not report revenue reported for
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f. Does the License relate to a Wir
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(e) provide a narrative response st
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1. Separately, for each year since
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APPENDIX A A. General Instructions
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“Patent” means a United States
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For district court and bankruptcy c
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Number Ending Reference Number Cust
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(i) (ii) (iii) (iv) For productions
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APPENDIX B Certification This Speci
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SPECIFICATIONS A. Identification of
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(1) state the jurisdiction; and (2)
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e. Identify, from the following lis
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(1) state the total revenue the Fir
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(1) identify the geographic restric
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F. Aggregate Cost Information 1. Se
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3. Produce, and provide a narrative
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Microsoft Word and PDF versions. Fo
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U.S. Patent numbers shall be provid
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(ii) Submit emails in image format
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Filename with extension Production
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(v) (vi) For each document withheld
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APPENDIX E: SUPPORTING STATEMENT FO
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“strongly urge[s] the FTC to foll
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The proposed case studies will prov
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What strategies do PAEs employ to a
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competition, innovation, and intell
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proposed requests “are a rational
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study questions and removed questio
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Some of the proposed requests for d
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Response: The Commission has narrow
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increase are not well understood.
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equests include interactions betwee
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In contrast, several commenters bel
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average burden for each of the appr
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enefits), and 320 research assistan
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PART B - COLLECTION OF INFORMATION
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stratum. The FTC will sum the two s
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Freedom and RPX use public sources
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The FTC will send one set of inform
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will have one entry for each acquis
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are two reasons why it is important
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Federal Trade Commission ftc.gov
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