2008 patent litigation study: Damages, awards, success rates and time-to-trial
posted on
Dec 24, 2009 12:55PM
Interesting holiday reading for those who want some insight into what's been going on in the world of patent litigation. All "quotes" below are from the study. "In light of the findings in this study, patent litigation appears to continue to be an effective protection and monetization path for patent holders. Although legislation is to be put in place that may influence patenting activities and the litigation process, for now, the courts appear to be increasingly protecting those patent holders proving the validity, enforceability, and infringement of their patents. With trial success rates at their highest level in history, patent holders appear to be winning with considerable awards of damages. The forum and the venue of a case can have a substantial impact on the outcome and should be carefully considered. The likelihood of success and the amount of damages awarded to the patent holder have been shown to vary dramatically between jury and bench trials and among federal districts. A shorter time-to-trial typically benefi ts a patent holder, but the probability of a success declines slightly after two years. However, if the time-to-trial exceeds four years, the trend seems to reverse due to the strengthening of a patent’s position and the expansion of the damages period increasing the probability of success and a more significant damages award. Also, time-to-trial and success rates by district seem to go hand in hand. Finally, appellate outcomes vary depending on the stage of the case at the time of the decision (summary judgment versus trial) and the forum issuing the district court decision (bench versus jury), with claim construction changes representing the most common reason for modifi ed and complete reversal of decisions."
"In a nutshell:
• The annual median damages award since 1995 has remained fairly consistent, when adjusted for inflation. • The disparity between jury and bench awards has widened and is likely the contributing factor in the significant increase in use of juries since 1995. • Reasonable royalties continue to be the predominant measure of damages awards. • Patent holders have been successful 37% of the time overall, with a 19% win rate in summary judgments and a 57% win rate at trial. • Alleged infringers increase their trial success rates slightly as plaintiffs, but have not experienced the same increased success in summary judgments. • While the median time-to-trial has remained fairly constant since 1995, significant variations arise by jurisdiction, and patent holder success rates tend to decrease with longer time-to-trial, up to a point. • Certain federal district courts (particularly Virginia Eastern, California Central, and Pennsylvania Eastern) continue to be more favorable to patent holders, with shorter time-to-trial, higher success rates, and higher median damages awards. • 32% of summary judgments are appealed, with 59% modified or reversed; while 43% of trial decisions are appealed, with 67% modified or reversed."
http://www.pwc.com/en_US/us/forensic-services/assets/2008_patent_litigation_study.pdfa nutshell:
between jury and bench awards has widened and is likely the c