Patent Assertion Entity Activity

Portfolio PAE Licenses Included More Complicated Terms than Litigation PAE Licenses
Responding PAEs also identified the scope of licenses that they and their Affiliates executed. 244 The
contract provisions limiting the scope of the licenses written by Portfolio PAEs and Litigation PAEs
differed significantly. Litigation PAEs entered into simple licenses. As shown in Table 3.2, only 1.9% of
these license agreements contained any limitations on either the field-of-use or the geographic regions
where the licensee could sell the licensed products. By contrast, Portfolio PAEs frequently included
limitations on their licenses: 71.8% of licenses contained a field-of-use restriction and 6% of licenses
included a geographic restriction. In addition, 4.4% of Portfolio PAE licenses contained a cross-license.
244
Appendix C: PAE Special Order, Specification H.3.m (“State the Licensed products or services.”).
88