US patent litigation continues to decline, says PwC
Patent litigation in the US declined in 2016, continuing a downward trend from the high point reached in 2013, according to professional services firm PwC.
In its recently released report, “PwC’s 2017 Patent Litigation Survey”, the firm found that 5,100 infringement cases were filed in 2016, a 9% drop from 5,600 in 2015.
An important change in pleading standards that took place in December 2015 is one likely factor behind the falling rate, according to PwC.
The abolishment of rule 84 of the Federal Rules of Civil Procedure made it harder for smaller entities to bring patent suits, said the firm.
In 2016, the largest patent infringement verdict in US history was granted in Idenix Pharmaceuticals v Gilead Sciences.
A jury awarded Idenix, a subsidiary of Merck, $2.5 billion after a patent related to a hepatitis C drug was infringed.
However, it appears that this award was an outlier—the 2016 median damages award was $6.1 million, a significant decrease from 2015’s median award of $10.2 million.
In June 2015, the US Supreme Court jointly decided two cases concerning the hurdles for obtaining enhanced damages under section 284.
According to PwC, Halo v Pulse and Stryker v Zimmer will make obtaining enhanced damages a “bit less daunting”.
PwC also noted that significantly higher damages are being awarded to non-practising entities (NPEs) relative to practising entities.
In 2012 to 2016, the NPE median damages award climbed to 3.8 more than the median for practising entities, with NPEs receiving $15.7 million compared to $4.1 million for practising entities.
The report also found that the five most active industry classifications (out of 20) collectively accounted for 60% of identified decisions.
Consumer products lead the pack—since 1997 the industry has represented 16% of all identified patent cases.
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