The following is excerpted from the above-titled 2010 Patent Litigation Study published by PricewaterhouseCoopers in September 2010 and mentioned in the Spring 2011 ABA Litigation News regarding patent litigation trends from 1995 to 2009 and the impact of recent court decisions on damages:
- Annual median damages (in 2009 dollars) award has ranged from $2.4 million to $10.5 million between 1995 and 2009, with no discernible trend.
- Damages awards for NPEs have averaged more than triple those for practicing entities since 2001.
- The disparity between jury and bench awards continues to widen 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.
- NPEs have been successful 31 percent of the time overall versus 40 percent for practicing entities, due to the relative lack of success for NPEs at summary judgment. However, both have about a 2/3 win rate at trial.
- Win rates of alleged infringers increase when they are the plaintiff. However, the increase is only significant when the patent holder is an NPE.
- While the median time-to-trial has remained fairly constant since 1995, significant variations exist between jurisdictions.
- Certain federal district courts (particularly Virginia Eastern, Delaware and Texas Eastern) continue to be more favorable to patent holders, with shorter time-to-trial, higher success rates and higher median damages awards.
- Five federal district courts accounted for 36 percent of all identified decisions involving an NPE as the patent holder.
Read the full report here.