Patent Assertion Entity Activity

factor of 10. This analysis included 902 royalty payments made to 14 different Study PAEs, which
licensed 38 unique sets of patents. 256
Figure 3.10a: Dispersion of Licensing Royalties Paid for Identical Sets of Patents
Note: Each Patent Group consists of a set of at least ten licenses reporting positive royalties where all
licenses correspond to the same set of patents. The midline of a box corresponds to the median, the blue
box represents the 75th and 25th percentiles and the outermost lines (in bold) represent the 90th and 10th
percentiles of the distribution of royalties for a given Patent Group. Figure depicts 902 royalty payments
made to 14 different Responding PAEs licensing 38 unique sets of patents.
256
The vast majority of the licenses included in this analysis (87% across Study PAEs) generated royalties below $300,000
(the AIPLA’s estimated lower bound on cost of defending a case through the end of discovery). Only five of the 38 groups of
patents had a mean license royalty of more than $300,000, and only one group had a median license royalty over $300,000.
Given the relatively low magnitude of the studied royalty payments, it may be the case that variability in the willingness to
avoid litigation played a larger role in generating variation in licensing fees than variation in the willingness to pay for the
licensed patents. AIPLA 2013 REPORT OF THE ECONOMIC SURVEY, supra note 7, at 35.
93