Meanwhile, 2,942 patent cases were filed in 2007, showing a 6% increase compared to the previous year. The figure is a 9% increase from 2005 and a 2% bump up from 2004.
Donald R. Ware, the chair of the IP group at Foley Hoag LLP, said the surge could be the result of plaintiffs trying to file in a plaintiff-friendly forum before the Patent Reform Act is passed by Congress. The Senate is set to vote on the bill as early as next week.
“One thing the act will do is curtail bringing cases in the Eastern District of Texas, particularly by patent trolls that have no manufacturing base in Marshall, Texas. Plaintiffs may be trying to get their cases in under the wire before the reform is enacted,” Ware said.
Kagan said patent litigation has been increasingly profitable over the last few years, but the act is also aiming to limit damages.
“A lot of people are coming out of the woodworks with patents to assert and there’s a rise in patent litigation. I think that will cool down over the next couple of years as changes in the patent laws and court decisions scale back protections from the patent,” Kagan said.
Crossan noted that companies like j2 Global Communications and GTI filed more than a dozen suits in 2007. He said companies are becoming more protective over revenue rights in a trend that shows no signs of letting up.
Growth In Patent Litigation, 2007
1 Year: +6%
2 Years: +9%
3 Years: +2%
Source: federal court dockets, Law360
Note: Figures represent annual growth in number of cases filed in U.S. district courts.
This is a part of article published in IP Law 360.
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