Patent Assertion Entity Activity

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elated to a single Responding PAE was 20. Responding Litigation PAEs were more likely than Responding Portfolio PAEs to report Affiliates that sent demands; the average Litigation PAE identified about six different demand-sending Affiliates while the average Portfolio PAE identified about two different demand-sending Affiliates. Figure 3.1: Demand Letters Sent By Study PAEs Note: Sample corresponds to 47 Study PAEs and is restricted to demand-sending Study PAEs that sent their first demand at least 12 months prior to the end of the study. Figure 3.1 presents a frequency distribution of the number of demands sent by individual Study PAEs. 194 Study PAEs’ demand campaigns varied considerably in the number of demands sent. However, most 194 Figure 3.1 is limited to Study PAEs (typically Affiliates) that sent their first demand at least one year before the study period ended. Including Study PAEs that sent their first demand in the last year of the study period might have biased the 60
Study PAEs sent demands to relatively few recipients. Approximately 30% of Study PAEs sent no more than five demands and about 10% of Study PAEs sent six to ten demands. Individual Study PAEs rarely sent a large number of demands. 195 Only 10% of the Study PAEs sent more than 100 demands, and the most active Study PAE in the data set sent fewer than 500 total demands during the study period. Demand Recipients Most Demand Recipients Received Only One Demand from Any Study PAE during the Study Period Approximately 1,600 different firms received demands from Study PAEs during the study period. 196 Figure 3.2 shows the frequency distribution of the number of demands received by each of the firms receiving demands from Study PAEs during the study period. FTC’s estimate of the number of firms contacted by a Study PAE downward as these Study PAEs may not have concluded their assertion campaign prior to the end of the study period. 195 Portfolio PAEs and Litigation PAEs sent an average of 68 and 27 demands, per Study PAE, respectively. 196 See Appendix B: Methodology (describing how the FTC identified the unique firms subject to assertion). 61
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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 (
Page 15 and 16: litigations tended to settle early;
Page 17 and 18: in a timely manner would help allev
Page 19 and 20: In December 2015, however, an amend
Page 21 and 22: Chapter 1: Introduction and Backgro
Page 23 and 24: corresponded to various types of NP
Page 25 and 26: PAE’s enforcement of that patent
Page 27 and 28: In one of the earliest studies, Jam
Page 29 and 30: defendants that will arise in the l
Page 31 and 32: entrepreneurship and related invest
Page 33 and 34: 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: FTC examined the frequency with whi
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 and 86: Figure 3.6: Frequency Distribution
Page 87 and 88: Figure 3.7: Proportion of Study PAE
Page 89 and 90: portfolios of patents, which typica
Page 91 and 92: manner and extent to which Respondi
Page 93 and 94: as quickly as possible. For Portfol
Page 95 and 96: Study PAEs Generated Approximately
Page 97 and 98: likely seeks to avoid the possibili
Page 99 and 100: factor of 10. This analysis include
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
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worldwide wireless chipset sales du
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with 75% of their settlements occur
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Wireless Respondents’ Licensing A
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Table 4.2: Percentage of Wireless P
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license with that entity, whereas P
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Most Wireless Licensees Operated in
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Conclusion The FTC’s goal in stud
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Patent assignments were frequently
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Figure 5.1: Size of Patent Holdings
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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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