Patexia Insight 168: Patent Wars - A Look at the Most Litigious Companies of 2023
Two weeks ago we released our third Patent Litigation Intelligence Report. This report examines patent litigation activity from July 1, 2017, to June 30, 2022, spanning a period of five years. The analysis is based on 18,493 patent cases filed during this time in district courts, involving 20,065 companies. The report provides statistical insights into patent litigation and highlights the most active and best-performing companies, law firms, and attorneys.
In previous insights, we have explored the activity of judges and the rise of Judge Albright in patent litigation in Patexia 165, as well as the 50 most active patent attorneys in Patexia 167. Today's insight focuses on the most active defendants and plaintiffs, based on the number of cases and patents they were involved in.
The number of patent litigation cases in district courts depends on multiple factors and has been influenced by several events over the years. The America Invents Act of 2011 and the introduction of the Patent Trial and Appeal Board (PTAB) in 2012 provided an alternative way for challenging patent validity. The 2014 Alice Corp. v. CLS Bank case, in which the Supreme Court ruled further affected the number of software cases. The COVID-19 pandemic has caused delays in scheduling and remote trials, but it has not negatively impacted the filing of patent litigation cases as seen in our data. Economic factors, such as the overall level of business activity and investment, can also impact the number of patent litigation cases. The following chart displays the filing activity and the number of unique patents per year during the period of our study:
As seen above, the yearly number of cases culminated in a peak of 3,953 in 2021, with only a slight 0.4% increase in litigation activity compared to the previous year. Despite this modest increase, it is noteworthy when compared to the patent litigation numbers in 2019 and 2018. Data from 2022 indicates that 3,766 cases were filed, reflecting a slight decrease from 2021, yet still higher than the levels seen prior to 2020.
Over the five-year period of our study, 22,720 patents were involved in 18,493 patent cases and this was taken into account when calculating the activity of entities. Data shows that in some instances, a single plaintiff holding a limited number of patents may sue hundreds of companies. Although having more defendants usually results in more work for the plaintiff, the amount of work doesn't necessarily increase in proportion to the number of cases filed (using the same patents). On the other hand, the number of patents involved in a case has a direct impact on the workload for each party or their representatives. As a result, the level of activity for a company, law firm, or attorney over a given time period depends on two factors: the number of cases filed and the number of patents involved.
Our Data Science team identified 20,065 unique companies acting as either defendants, plaintiffs, or active on both sides. Out of these, 5,865 were unique entities serving as plaintiffs, with an average of 3.5 cases per plaintiff. Meanwhile, there were 15,580 entities acting as defendants, with an average of 1.8 cases per defendant. The table below showcases the 10 most active defendants in a five-year period analyzed in our study:
| Defendant Activity Rank | Company | Defendant Cases | Defendant Unique Patents |
|---|---|---|---|
| 1 |
270 |
866 |
|
| 2 | Apple | 256 | 576 |
| 3 |
239 |
440 |
|
| 4 | LG Electronics | 150 | 451 |
| 5 |
160 |
401 |
|
| 6 | Microsoft | 152 | 358 |
| 7 |
103 |
286 |
|
| 8 | Verizon | 110 | 248 |
| 9 |
97 |
265 |
|
| 10 | Dell | 98 | 206 |
As observed, the top ten defendants list is comprised solely of companies highly active in the high technology sector, including designers and manufacturers of electronic devices, hardware, software, and cloud services. All of these companies have cutting-edge products, making them a target for entities possessing technology patents related to their product lines.
As shown, the list is comprised exclusively of companies that are major players in the technology sector. These companies are involved in designing and producing a wide range of technological products, including electronic devices, hardware, software, and cloud services. Their innovative products and technologies have made them popular targets for entities that own technology patents related to their products. The fact that they are so active in the high technology sector and have several innovative products and services makes them the likely target for patent litigation.
Below is a table displaying the ten most active plaintiffs during the period of our study, including the number of cases and patents they were involved in:
| Plaintiff Activity Rank | Company | Plaintiff Cases | Plaintiff Unique Patents |
|---|---|---|---|
| 1 |
1021 |
81 |
|
| 2 | WSOU Investments LLC |
203 |
147 |
| 3 |
334 |
100 |
|
| 4 | Rothschild Patent Imaging, LLC | 609 | 50 |
| 5 |
288 |
72 |
|
| 6 | Dynamic Data Technologies, LLC | 21 | 178 |
| 7 |
63 |
96 |
|
| 8 | Roche | 26 | 120 |
| 9 |
75 |
67 |
|
| 10 | Hitachi, Ltd. | 25 | 95 |
Stay tuned as in the next few weeks we will be providing you with some of the best-performing law firms in patent litigation based on the outcomes of the 18,493 cases filed in the past five years as well as include more statistical insights from our Patent Litigation Report 2023.