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PublishedAugust 2, 2024

Patent Dispute Report: 2024 Mid-Year Report


This post initially appeared on Unified Patents’ News and Views Blog. More analysis is available here

Patent litigation in the United States showed an upward trend in the first half of 2024, with non-practicing entity (NPE) filings increasing significantly compared to the same period in 2023. The Eastern District of Texas remained the top venue for patent cases, while the Western District of Texas maintained its position as the second most popular district for NPEs despite changes in case assignment rules. The District of Delaware saw a continued decline in NPE filings due to heightened transparency requirements.

Many plaintiffs were linked to established patent monetization firms or industry veterans. Litigation funding continued to play a significant role, with several new campaigns tied to prominent funders. Notably, there has been an increasing push for transparency in litigation funding. The District of Delaware, under Chief Judge Colm F. Connolly, has been at the forefront of this movement, requiring detailed disclosures of third-party funding arrangements. This trend has influenced practices in other jurisdictions and sparked debates about the proper scope of such disclosures.

At the Patent Trial and Appeal Board (PTAB), petition filings held relatively steady compared to 2023. The USPTO moved forward with planned reforms to PTAB procedures, including proposed rules on discretionary denials. However, the Supreme Court’s elimination of Chevron deference could create uncertainty around agency rulemaking especially with the recent developments of ANPRM and Patent Eligibility Restoration Act. Ex parte reexamination requests reached record levels as an alternative to PTAB challenges.

Several important rulings impacted patent litigation in 2024. The Supreme Court’s decision in Loper Bright Enterprises v. Raimondo overturned the Chevron deference doctrine, potentially affecting USPTO regulations and procedures. In the Western District of Texas, a revised case assignment order aimed to address concerns about judge shopping, though its full impact remains to be seen. This combined with the disclosure rules in Delaware has led to the emergence of the Eastern District of Texas.

In the standard-essential patent (SEP) space, China’s courts asserted global rate-setting power over foreign patent pools. The Unified Patent Court in Europe issued its first rulings on SEPs, revealing divergent approaches among local divisions on issues such as licensing transparency and securities for NPEs. Overall, patent litigation dynamics continued to evolve in response to legal developments, venue changes, and market forces.

Below are some key highlights from the report:

  • Both NPE and non-NPE litigation show significant increases in the first half of 2024 compared to the second half of 2023, with NPE filings growing by 14.06% and non-NPE filings by 13.44%
  • Eastern District of Texas remained the top venue; Delaware NPE filings declined further
  • Reexamination requests have increased dramatically, doubling from the first half of 2023 to the first half of 2024. This represents a major shift in patent challenge strategies.
  • Supreme Court overturned Chevron deference, creating uncertainty for USPTO rulemaking
  • Chinese court asserted power to set global FRAND rates for foreign patent pools
  • $847 million jury verdict awarded in funded NPE campaign against Verizon
  • The Unified Patent Court in Europe issued its first SEP-related rulings
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Sam Baird

Director of Analytics, Unified Patents

Samuel Baird is an attorney and currently Director of Analytics at Unified Patents. He has been with Unified since 2020. He received his law degree from Case Western Reserve University and has a master’s degree in Intellectual Property Management and Markets from the Illinois Institute of Technology. Prior to Unified Patents, Samuel worked at RPX and a technology transfer office. Before becoming an attorney, Samuel spent nearly ten years in the sports broadcast industry as a graphics operator and producer.

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