61% of Patent Lawsuits Brought By ‘Patent Assertion Entities

Colleen Chien, a law professor at Santa Clara University, provided research showing that 61% of US Patent lawsuits in 2012 (up to Dec. 1) are brought by ‘patent assertion entities.” Justice Kennedy defines patent assertion entities as, “firms [that] use patents not as a basis for producing and selling goods but, instead, primarily for obtaining licensing fees.” LLC v. eBay, Inc., 401 F.3d 1323, 1338 (Fed. Cir. 2005).

This percentage has substantially increased from 45% in 2011 and 19% in 2006. It appears that it is becoming more profitable to sue patent infringers and extract licensing fees than it is to produce and sell one’s invention.

The original article is available here.