In 2019, NPE and Operating Company Patents Were Invalidated Under Alice at Nearly the Same Rate
March 25, 2020
RPX data show that patents held by NPEs and operating companies were invalidated under Alice at similar rates in 2019. Last year, 44% of NPE patents adjudicated under Alice saw at least one claim invalidated, while 42% of operating company patents had claims ruled unpatentable—with an overall invalidation rate of 43%. However, courts decided more Alice challenges for NPE patents, which accounted for 58% of the total of patents with judgments on that issue (compared to 42% for operating companies).
Outcomes diverge based on plaintiff type when the data is expanded to include all challenges decided since the Alice opinion’s issuance in June 2014. While operating company patents had an Alice invalidation rate of 52% during that period, around 65% of NPE patents saw claims cancelled—for an overall invalidation rate of 60%.
