Patexia Insight 228: Patent Litigation on the Rise in 2024
The year 2024 has seen an uptick in patent litigation, reversing the downward trend observed since 2022. This increase underscores the growing importance of intellectual property in today's highly competitive and innovation-driven marketplace. As companies strive to protect their technological advancements and maintain market dominance, courts across the United States have become battlegrounds for resolving disputes that can potentially shape entire industries.
Understanding the litigation trends is crucial for attorneys, in-house counsel, and businesses wanting to gain insights into patent enforcement and defense. What industries are driving this increase? Which district courts are seeing the most activity? And how are law firms and attorneys adapting to this evolving environment? To answer these questions and more, Patexia is pleased to announce the upcoming release of our Patent Litigation Intelligence Report 2025 in January. This comprehensive report will provide data-driven insights, rankings, and analysis, helping stakeholders stay ahead in an increasingly dynamic field. In this article, we’ll explore the recent rise in patent litigation across district courts, PTAB, and ITC, as well as offer a glimpse into what our upcoming report will cover.
The data presented in the chart above reveals a fluctuating but persistent volume of patent litigation cases in U.S. district courts over the past six years. After a peak of 3,953 cases in 2021, filings saw a steady decline through 2022 (3,766) and reached their lowest point in 2023 (3,108). However, the trend reversed in 2024, with filings rising to 3,683—an 18.5% increase compared to the prior year. This rebound suggests renewed activity in patent litigation, positioning 2024 as a recovery year following the slowdown observed in 2023, although the total filings have not reached the levels of 2020 or 2021.
Patent litigation trends are typically influenced by a complex interplay of economic, legislative, and strategic factors, making it difficult to attribute changes to a single cause. In 2023, fluctuating activity by non-practicing entities (NPEs)—notable contributors to case volume—emerged as a potential factor, possibly influenced by heightened legal scrutiny surrounding IP Edge. Adding to the complexity, in a December 2024 study on Third-Party Funding of Patent Litigation published by the U.S. Government Accountability Office, Department of Justice officials stated that they are examining whether foreign entities are investing in U.S. patent litigation to acquire proprietary information benefiting their own industries. However, they did not confirm the existence of or provide details about any specific ongoing investigations. Additionally, economic uncertainty and fears of a recession may have led to tighter corporate budgets and more cautious litigation strategies. In 2024, however, the Eastern District of Texas, in particular, experienced a significant rise in patent filings—a trend analyzed in greater detail in our upcoming Patent Litigation Intelligence Report 2025. This coincides with the general increase in filings during 2024, and the perception of this district as plaintiff-friendly, highlights the ongoing influence of venue preferences.
The Patent Trial and Appeal Board (PTAB) has maintained its position as an important venue for resolving patent disputes. In 2024, PTAB saw 1,255 Inter Partes Review (IPR) proceedings initiated, an increase from the 1,157 filings in 2023. Other proceedings, including Post Grant Review (PGR) and Derivation Proceedings (DER), remained minimal, with only 38 filings recorded. The dip in PTAB filings during 2023 and the recent increase in PTAB activity coincide with the general rise in district court patent filings in 2024, reflecting the interconnected nature of these forums. PTAB remains a strategic tool for defendants to challenge patent validity, often serving as a countermeasure to district court lawsuits. In a separate Patexia Insight, we demonstrated that nearly 80% of IPRs are filed in parallel with a district court case for defensive purposes.
The U.S. International Trade Commission (ITC) plays a major role in patent litigation through its Section 337 investigations, which address unfair trade practices, including patent infringement in imported goods. Section 337 allows patent owners to seek relief when their intellectual property rights are violated by imported products that infringe on U.S. patents. Unlike district court cases, ITC investigations can result in exclusion orders, barring the importation of infringing products into the U.S., making it a key venue for patent holders, especially in industries like electronics and manufacturing.
Examining recent trends in ITC filings reveals fluctuations in case activity over the past five years. In 2023, the number of unique cases saw a decline to 50, down from 79 in 2022. However, the trend appears to have rebounded in 2024, with filings rising again to 72. While the number of ITC cases is not comparable to other venues such as district courts or the PTAB, the impact of Section 337 investigations is nonetheless significant. A notable example is the Apple and Masimo Corporation case, where the ITC's determination of infringement forced Apple to make substantial modifications to its products for the U.S. market. By removing the blood oxygen monitoring feature from the Apple Watch Series 9 and Ultra 2 models, Apple ensured compliance with the ITC's exclusion and cease-and-desist orders. This decision had a far-reaching impact, influencing both legal strategies and product innovation within the industry.
As we prepare for another year of analyzing and reporting on intellectual property trends, Patexia is here to help you stay ahead with actionable insights into patent litigation, PTAB, and ITC activity. Are you looking to thoroughly understand litigation trends by analyzing the courts, technologies, and key players driving this growth? Do you need access to detailed data profiles for companies, attorneys, and law firms to gain a competitive edge?
Our Concierge subscription is designed to provide the in-depth analysis you need. With access to our patent litigation, PTAB, or ITC modules, you can explore comprehensive reports, evaluate firm and attorney performance, and conduct competitive research to make strategic decisions. Whether you’re an attorney, in-house counsel, or a legal professional, our subscription equips you with the tools to stay informed and proactive in the ever-evolving IP landscape.