U.S. District Courts See Decline in Patent Litigation Despite Rise in Patents Granted
Study Decodes Twenty Years of Patent Litigation: Median Damages, Venue Shifts, and Injunctions Under the Microscope
APRIL 26, 2024 (New York, NY) – A newly released study from Marcum LLP reveals surprising trends in two decades of patent litigation, shedding light on unexpected patterns that counter the steady increase in patents granted by the U.S. Patent and Trademark Office. The 2024 Marcum Patent Litigation Study examines the decline in patent infringement lawsuits, median damage awards, the impact of court decisions on permanent injunctions, and shifting legal venue preferences, providing strategic insight for business and legal professionals.
Key Findings
- Overall Drop in Litigation: Although the number of patents granted annually continues to rise, the number of patent infringement lawsuits filed in U.S. District Courts has decreased significantly. In 2013, 6,497 cases were filed, but by 2022, this number had dropped to 3,639.
- Median Damages: Over the last 20 years, median damages in patent cases are approximately $3.7 million. Excluding default judgments, this rises to $5.6 million, peaking at $9 million in 2005 and more recently trending downward to $2.4 million.
- Permanent Injunctions: Post eBay Inc. v. MercExchange, permanent injunctions granted fell sharply, with a noticeable annual decline from 80 to 36 over the last fifteen years.
- Venue Shifts: The TC Heartland decision reshaped venue preferences, diminishing the Eastern District of Texas’s dominance in favor of the Western District of Texas. However, recent changes are also affecting the Western District’s status.
- Enhanced Damages: After Halo Electronics, Inc. v. Pulse Electronics, Inc., from 2003 to 2022, 22% of cases saw enhanced damages due to willful infringement, averaging a 2.3x award multiplier.
“The research effort behind the patent litigation study was substantial, aimed at going beyond academic analysis to provide a strategic perspective on intellectual property trends,” said William Scally, the lead author of the study and the National Leader of Litigation Advisory Services at Marcum LLP. “The findings of this study offer insight into the trends and shifts that may influence how businesses approach patent litigation and consider intellectual property management strategy moving forward.”
Marcum’s litigation support team utilized Westlaw databases, Law360, and CaseText to provide this comprehensive overview of patent litigation trends.
About Marcum LLP
Marcum LLP is a top-ranked national accounting and advisory firm dedicated to helping entrepreneurial, middle-market companies and high net worth individuals achieve their goals. Marcum’s industry-focused practices offer deep insight and specialized services to privately held and publicly registered companies, and nonprofit and social sector organizations. The Firm also provides a full complement of technology, wealth management, and executive search and staffing services. Headquartered in New York City, Marcum has offices in major business markets across the U.S. and select international locations. #AskMarcum.
