Difference between revisions of "The Truth Behind Patent Trolls"

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[[Image:Patent_litigation_2011.2015.png]]
 
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'''Hypothesis 3: Data that supports increased costs to innovation rely on broad and confusing definitions for NPEs and PAEs'''
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'''Interesting facts that may deserve extra research'''
 
'''Interesting facts that may deserve extra research'''
 
*Historically, the [[Eastern District of Texas]] is the top patent dispute venue. In 2015, 44% of all patent litigation was filed in E.D. Texas, most of which were assigned to Judge Rodney Gilstrap
 
*Historically, the [[Eastern District of Texas]] is the top patent dispute venue. In 2015, 44% of all patent litigation was filed in E.D. Texas, most of which were assigned to Judge Rodney Gilstrap

Revision as of 16:37, 11 March 2016

Patent Trolls are an innovation bogeymen, with numerous research articles and legislation addressing ways to curb troll activity. Patent Trolls, also known as Patent Assertion Entities, generate revenue through suing or threatening to sue businesses that infringe on patents. Experts dispute terms for such corporations, labeling them as either Patent Assertion Entities or Non-Practicing Entities.


Hypothesis 1: Most Patent Assertion Entities are drivers of innovation, and incorrectly labeled as patent trolls.

Method 1: Find list of PAEs, sort by location, number of lawsuits filed, damages. Need to control for size of company and sector.

Top 10 PAEs in 2015, according to (Unified)

Patent Assertion Entities Filings, 2015
Company Name Total Lawsuits Filed¹ Lawsuits Filed in Eastern District of Texas¹
eDekka LLC 101 101
Data Carriers LLC 85 85
Shipping and Transit LLC 69
Cryptopeak Solutions LLC 66 66
Hawk Technology Systems LLC 61 3
Rothschild Connected Devices Innovations LLC 60 59
Wetro Lan LLC 56 55
Loramax LLC 50 50
Genaville LLC 50 50
Oberalis LLC 50 50

¹ Data aggregated via LexMachina

² 79% of cases filed in Southern District of Florida


648 total cases, 519 in E.D. Tex. 80.09% of all patent litigation cases filed in 2015 were filed in E.D. Texas.

A patent infringement case can be filed in any of the US districts that have personal jurisdiction over the defendant, which include states or districts where the defendant's products are sold, regardless of whether or not an office exists in that location. (1) The large number of cases filed in E.D. Texas could point to the favorable disposition of the court patent holders. See Eastern District of Texas.


Hypothesis 2: Patent litigation is increasing, but only because of the uncertain nature of technological developments and how patent claims apply to that. Patent litigation surges are consistent with major shifts in technological developments

  • High tech is the only sector where a majority of cases were NPE related

Method: Find a reliable graph of developments within the technology sector and match it to the one below [1]:

Patent litigation 2011.2015.png


Hypothesis 3: Data that supports increased costs to innovation rely on broad and confusing definitions for NPEs and PAEs


Interesting facts that may deserve extra research

  • Historically, the Eastern District of Texas is the top patent dispute venue. In 2015, 44% of all patent litigation was filed in E.D. Texas, most of which were assigned to Judge Rodney Gilstrap