Patexia Insight 188: Leading Companies in ITC Investigations for 2023
Patexia released its fourth annual ITC Intelligence Report 2023 in late February. The report delves deep into the intricate web of Section 337 ITC investigations. It offers a panoramic view of the trends, high-level statistics, lateral moves and ranks all stakeholders and key players who have shaped the landscape over the past six years. In our previous insights, we have already covered the growing trend of Section 337 investigations, as well as some of the very best attorneys based on their high activity or distinguished performance. This week, our focus will shift to the top companies.
During our study period, from January 1, 2017, to December 31, 2022, a total of 416 ITC Section 337 investigations were filed, 326 of which were violation investigations. A total of 1,040 unique patents were at the center of these investigations, averaging 2.5 patents per individual investigation. The following chart displays the annual distribution of the 416 investigations, including the most recent data available for 2023:
As seen above, the number of ITC investigations exhibits a pattern of variation from year to year. In 2017, it began with a notable count of 76 cases, providing a robust start to our study period. However, as we entered 2018 and 2019, we observed a decline, with both years recording 59 investigations. Yet, the subsequent years saw a shift in this trajectory. The year 2020 marked a turnaround, witnessing an increase in cases to a total of 70. In 2021, the numbers continued to rise, reaching a count of 74 investigations, further solidifying the upward trend. In 2022, the number of investigations reached 78, marking the highest count within our study period. The early data for the first half of 2023 (H1 2023) indicates 24 investigations filed. The dynamics and implications of this data for the latter half of 2023 will be of great interest as we progress in our analysis of future insights and in preparation for the upcoming ITC Intelligence Report 2024.
Between January 1, 2017, and December 31, 2022, a total of 1,927 companies found themselves embroiled in the complex landscape of Section 337 ITC investigations. Among the 1,927 companies involved, 307 took on the role of complainants, while a substantial 1,689 operated as respondents in the intricate web of Section 337 ITC investigations. On average, each company was involved in 1.3 ITC investigations, however, it's crucial to emphasize that certain companies exhibited significantly higher levels of activity. Furthermore, some companies participated on both sides of these legal battles. This distribution of roles and caseloads further illustrates the multifaceted nature of intellectual property disputes and trade regulations within the ITC Section 337 landscape. The following two tables feature the top five most active complainants and respondents, along with their corresponding number of investigations and activity scores as measured in our ITC Intelligence Report 2023.
| Respondent Activity Rank | Company | Respondent Investigations | Respondent Activity Score |
|---|---|---|---|
| 1 | Samsung Electronics | 24 | 100.00 |
| 2 | Motorola Solutions, Inc. | 16 | 94.45% |
| 3 | Lenovo | 17 | 92.45% |
| 4 | Apple Inc. | 17 | 84.58% |
| 5 | TCL Corporation | 10 | 74.85% |
| Complainant Activity Rank | Company | Complainant Cases | Complainant Activity Score |
|---|---|---|---|
| 1 | Ericsson | 6 | 100.00% |
| 2 | Samsung Electronics | 5 | 90.58% |
| 3 | Hitachi, Ltd. | 5 | 82.87% |
| 4 | Honeywell International | 5 | 78.59% |
| 5 | Bell Semiconductor, LLC | 3 | 73.16% |
In the past, we calculated Activity Score by counting the total number of cases for attorneys, law firms, or companies. However, we now consider recent activity more crucial to gauge a law firm's current involvement. For instance, in our 2023 activity ranking, a firm with five ITC investigations in 2017 ranks lower than one with the same number in 2022. To adapt to this, we employ a weighted function that discounts older cases in the total activity calculation. Recent cases are given more weight as a lack of recent activity can signal a slowdown or attorney departures. The calculated activity score is then normalized to a scale from 0 to 100 for consistency with other scores. To reduce score gaps, we use logarithmic calculations and scale them to 100, maintaining uniformity across all success, performance, and activity scores, all measured on a 100-point scale.
The Success Score, is a crucial metric in evaluating Section 337 ITC investigations. A terminated investigation can yield various outcomes and these outcomes may differ even among respondents involved in the same investigation. Rather than assigning the same score to all respondents and their attorneys for a single ITC case, our scoring methodology takes into account these diverse respondent outcomes within a single case, as we have diligently strived to do. In our latest report, we applied a regression model to measure success even more accurately. When assessing the success of all participants and their representatives, we adjusted scores based on the presence of other external factors. After determining the adjusted success for each participant in a given investigation, we calculated their average success score by taking the average across all the cases they were involved in. This advanced approach allows for a more precise and fair assessment of an individual's success within the complex landscape of ITC investigations. As for the Performance Score, it uses a weighted average of Success and Activity scores. This scoring method is invaluable because it allows us to pinpoint attorneys and law firms with high activity levels and a track record of success in ITC Section 337 Investigations. Below are the top five complainants and respondents as ranked by their performance score:
| Respondent Performance Rank | Company | Respondent Investigations |
Respondent Performance Score |
|---|---|---|---|
| 1 | Samsung Electronics | 24 | 100.00 |
| 2 | Amazon, Inc. | 12 | 77.19% |
| 3 | 9 | 77.16% | |
| 4 | LG Electronics | 13 | 76.00% |
| 5 | Lenovo | 17 | 75.47% |
|
Complainant Performance Rank |
Company | Complainant Cases |
Complainant Performance Score |
|---|---|---|---|
| 1 | Ericsson | 6 | 100.00% |
| 2 | Hitachi, Ltd. | 5 | 83.12% |
| 3 | Samsung Electronics. | 5 | 78.25% |
| 4 | Hyundai | 3 | 78.24% |
| 5 | Wilson Electronics, LLC | 3 | 77.27% |
The upcoming ITC Intelligence Report 2024 is scheduled for release in February 2024. This report extends its analysis beyond filing trends to encompass aspects such as unfair acts, case statuses and investigation conclusions, the percentage of investigations further appealed in the Federal Circuit, investigations' average duration, and the most prevalent litigated technologies, among other factors. Furthermore, the report will present comprehensive rankings and metrics for all stakeholders involved, including attorneys, judges, companies, and law firms, offering a holistic perspective on the landscape of Section 337 ITC investigations. You can preorder your copy of this report with a discount here.
Stay tuned, as in the following weeks, we will be covering some of the top law firms in the Section 337 ITC landscape, along with insights from our upcoming CAFC Intelligence 2023 Report, set to be released in three weeks.