Are Patent Trolls Really on the Rise?

Online, October 26, 2012 (Newswire.com) - A new study by Robin Feldman suggests patent troll litigation almost doubled from 2007 to 2011. But the underlying data actually reveals a more complex issue. Patent trolls sued fewer defendants in 2008, 2009, and 2010. The number of defendants sued by trolls in 2011 only increased marginally.

While the results suggest patent troll litigation has experienced a prolific increase since 2007, the authors acknowledge that the 2011 America Invents Act may have skewed the data. One of the new rules developed under the America Invents Act requires that most patent cases against multiple defendants be filed individually. Under the old system, patent trolls could file a single lawsuit against tens or hundreds of defendants.

As a result, the actual number of patent lawsuits may have increased in 2011 simply as a result of new rules requiring plaintiffs to file lawsuits against multiple defendants separately. To test this theory, the authors analyzed the number of defendants sued in each case filed from 2007 to 2011. The authors conclude that the "number of defendants sued by patent monetization entities has also increased."

"The new joinder requirements under the 2011 America Invents Act requires patent monetizers to sue defendants in individual lawsuits," says Darin Klemchuk. "Under the old system, plaintiffs would sue tens or even hundreds of defendants in one lawsuit." "Feldman's data reveals a stark increase in suits filed by patent monetizers in 2011, but the actual number of defendants sued relative to all patent litigation defendants seems to have only increased slightly from 2007."

Patent trolls litigation increased in 2011, but it remains to be seen whether this is a trend or an anomaly.

About Darin Klemchuk:
Darin Klemchuk is co-founder and managing partner of Klemchuk Kubasta LLP, a Dallas-based IP boutique law firm that offers comprehensive intellectual property legal services, including litigation and enforcement of all forms of intellectual property as well as registration and licensing of patents, trademarks, trade dress and copyrights. To contact Mr. Klemchuk, email him at [email protected]