In Q2 2020, Operating Company Litigation Swung Upward
July 15, 2020
RPX data show that operating company patent infringement filings in Q2 2020 were the highest seen in any second quarter since 2012. In Q2, operating companies added 566 defendants to patent litigation campaigns, beating the same quarter last year by 62.6% and exceeding the Q2 2016-2019 average by 38.8%. Moreover, operating companies filed 36.4% more patent litigation than in the first quarter of this year.
However, the second-quarter operating company numbers include 127 defendants added to a single design patent case targeting purveyors of collapsible drinking straws. Excluding that case, Q2 operating company litigation exceeded the four-quarter trailing average by a smaller amount (7.7%) but was still higher than all second quarters since 2017.
Meanwhile, NPEs filed more patent litigation in Q2 2020 than in any second quarter since 2016, adding 633 defendants to campaigns—17.4% more than the same period last year, and 10.9% more than the Q2 2016-2019 average.
| Defendants Added | Change Compared to: | ||||
| Q2 2020 | Q2 2019 | Q2 2016-2019 Average | Q1 2020 | ||
| Operating Company | 566 | +62.6% | +38.8% | +36.4% | |
| NPE | 633 | +17.4% | +10.9% | +28.1% | |
| Total | 1,199 | +35.2% | +22.5% | +32.8% | |
In total, 1,199 defendants were added to campaigns in Q2, an increase of 35.2% over the second quarter of 2019 and 22.5% higher than the average for 2016-2019. Additionally, the overall defendant count was up by 32.8% compared to Q4 2019, consistent with prior seasonality patterns.
See RPX’s second-quarter review for more on district court trends and other developments affecting the patent space.
