2015 patent reform update - berkeley law · 2015 patent reform update brian j. love & colleen...
TRANSCRIPT
2015 Patent Reform Update
Brian J. Love & Colleen V. ChienDecember 11, 2015 APLI
The Call for Reform
“What we need to do is pull together additional stakeholders and see if we can build some additional consensus on smarter patent laws” – Feb. 14, 2013
The Call for Reform
Executive Priorities and ActionsReduce “unnecessary costs”Fee-ShiftingComputer Enabled Patents / Functional ClaimingDemand LettersReal Party in InterestITC Reform
The Call for Reform
“And let’s pass a patent reform bill that allows our businesses to stay focused on innovation, not costly and needless litigation.”
Reform Efforts
How well have the calls been answered?
Call: “Innovation, not… litigation”
Overall Level of Litigation
Source: Lex Machina; Unified Patents
Overall Level of Litigation
Overall Level of Litigation
Source: Lex Machina; Unified Patents
0
1000
2000
3000
4000
5000
6000
7000
8000
2010 2011 2012 2013 2014 2015 (proj)
Projection ~5900 cases
=~500 cases per month
Overall Level of Litigation
0100020003000400050006000700080009000
2010 2011 2012 2013 2014 2015(proj)
District Courts + PTAB District Courts
Percentage of NPE Suits
Source: Unified Patents
Through 3Q15: 67% NPE
Percentage of NPE Suits
Source: RPX
61% 71% 70% 69% 69% 61% 71%
0%
20%
40%
60%
80%
100%
Jan-June July-Dec2012
Jan-June July-Dec2013
Jan-June July-Dec2014
Jan-June July-Dec2015(proj)
Tota
l Num
. Sui
ts
NPEs Prod Co's
Percentage of NPE Def’s
Source: RPX
57%68% 67% 64% 62% 55%
66%
0%
20%
40%
60%
80%
100%
Jan-June July-Dec2012
Jan-June July-Dec2013
Jan-June July-Dec2014
Jan-June July-Dec2015(proj)
Tota
l Num
. Def
enda
nts
NPEs Prod Co's
Distribution of Unique NPE Defendants
Source: RPX
54%
59%
62%
58%
57%
63%
67%
13%
13%
10%
12%
14%
9%
9%
19%
17%
17%
18%
17%
16%
13%
10%
8%
8%
8%
8%
8%
7%
4%
4%
3%
4%
4%
4%
3%
1H
2H
1H
2H
1H
2H
1H
2012
2013
2014
2015
$0-100M$100M-1B$1B-10B$10B-50B$50B+
Call: “Reduc[e] unnecessary costs of patent litigation”
Litigation Costs – AIPLA
Litigation Cost – AIPLA
Litigation Cost – AIPLA
Call: “More discretion in awarding fees”
Fee Shifting Post-Octane
Fee Awards Post-Octane
Federal Circuit Bar Association
No. Granted RatePre-Octane
[May 2013-April 2014] 46 6 13%
Post-Octane[May 2014-March 2015] 85 31 36%
Motions by Accused Infringers
Total Motions 85 over 10 months, 8.5/month
Fee Awards Post-Octane
Source: Hannah Jiam, Berkeley Tech. L.J.
Call: “Computer-enabled patents”
Early Alice Motions
No. Granted Rate
Motions to Dismiss 47 35 74%
Motions JOP 42 29 69%
Motions for SJ 59 43 73%
Source: Bilski Blog (Nov. 6, 2015)
Federal Court Decisions 174 over 16 months, ~10 per month
Early Alice Motions
No. Granted Rate
D. Del. 31 28 90%
E.D. Tex. 23 8 35%
N.D. Cal. 19 15 79%
Source: Bilski Blog (Nov. 6, 2015)
Claim Clarity PTO Initiatives
Enhanced Patent Quality Initiative
Post Grant Challenges
Source: PTO
Post Grant Challenges
61%17%
22%
PTAB Filings By Industry (as of 3Q15)
High-Tech
Medical
Other
PTAB
Source: Unified Patents
Post Grant Challenges
Source: Unified Patents
Through 3Q15: 43% NPE
~150 petitions/month, ~12% of unique litigated patents has been challenged in IPR
Inter Partes Review
Petitions filed by 3/31/2015PTAB activity as of 10/19/2015 2694
SettledPre-InstitutionPost-Institution
687376311
25%55%45%
Institution DecisionsInstitutedNot Instituted (On Merits)
22611639622 (462)
84%73% (78%)27% (22%)
Adverse Judgments 96 4%
Final Written Decisions (updated to 10/31)
All claims unpatentableAll claims confirmed
63045386
24%72%14%
Call: “Demand Letter Transparency”
Demand Letter Reform
Source: Patent Progress
Venue
Concentration in E.D. Tex.
Source: Lex Machina
Concentration in E.D. Tex.
Source: RPX
Whither venue reform?
In re TC Heartland
Dir. Michelle Lee, 2015 Santa Clara Bobblehead