US Patent Suits Get Resolved on the Merits Just 3% of the Time

RPX data on US patent litigation outcomes paint a detailed picture of the manner in which patent cases get resolved—and how few of them are decided on the merits.

The following graph provides a breakdown of dispositive outcomes in all US patent cases filed since 2005 and closed before 2020 (excluding cases involving e-seller defendants or asserting only design patents), counting those outcomes on a per-defendant basis. At a high level, RPX classifies these outcomes as either non-merits- or merits-based.

Of the “non-merits” outcomes, the most common reason for dismissals—accounting for around half—is “likely settlement”, which includes cases that ended via some sort of bilateral or non-adversarial motion (e.g., a stipulated, agreed, or unopposed motion to dismiss). Next is plaintiff voluntary dismissal, or unilateral dismissal by the plaintiff, which accounts for 26% of case terminations; followed by contested dismissals, which involve threshold issues like jurisdiction and standing and account for 12%. While likely settlements and plaintiff voluntary dismissals can result in earlier case terminations, getting to those outcomes can still involve significant cost for litigants. Meanwhile, just 3% of patent cases are resolved on the merits of the underlying claims of patent infringement—outcomes that take much longer, and thus also usually result in hefty legal fees.