NPEs Continued Their Filing Streak in Q2 2020
August 5, 2020
RPX data show that 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. NPEs filed 28.1% more litigation in the second quarter than they did in Q1 2020, which itself was the strongest first quarter NPEs have had since 2015.
Meanwhile, operating companies added 566 defendants in Q2—the highest levels seen for such plaintiffs since 2012. In the second quarter, operating companies filed 62.6% more litigation than in Q2 2019, exceeding the Q2 2016-2019 average by 38.8%. However, the second-quarter operating company numbers include 127 defendants added to a single design patent case. Excluding that lawsuit, operating company litigation still exceeded the four-quarter trailing average, though by a smaller amount (7.7%).
| Defendants Added | Change Compared to: | ||||
| Q2 2020 | Q2 2019 | Q2 2016-2019 Average | Q1 2020 | ||
| NPE | 633 | +17.4% | +10.9% | +28.1% | |
| Operating Company | 566 | +62.6% | +38.8% | +36.4% | |
| 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.
