As IP Edge’s Litigation Pause Persists, Its Downward Pull on NPE Numbers Has Lessened
In the fourth quarter of 2023, NPEs added 442 defendants to patent litigation campaigns, or 17% less than Q4 2022—falling 28% short of the trailing three-quarter Q4 average, but exceeding Q3 2023 by 15%. This dropoff was less pronounced than in Q3, which saw over 30% less NPE litigation than the same quarter the year prior.
That narrowed gap was partly the result of the mere passage of time since the once-prolific monetization firm IP Edge LLC stopped filing new litigation after November 2022, largely the result of ongoing pressure over transparency in Delaware—and a resulting investigation into its business model by Chief Judge Colm F. Connolly. Since the firm filed no litigation in either December 2022 or December 2023, there was no IP Edge-related decrease during the latter month.
Meanwhile, operating companies added 283 defendants in Q4, a 19% increase compared to the fourth quarter last year. Operating company filings last quarter were 21% lower than in Q3 2023, though they exceeded the trailing Q4 average by 23%.
| Defendants Added | Change Compared to: | ||||
| Q4 2023 | Q4 2022 | Q4 2020-2022 Average | Q3 2023 | ||
| NPE | 442 | -17% | -28% | 15% | |
| Operating Company | 283 | 19% | 23% | -21% | |
| Total | 725 | -6% | -10% | -2% | |
Overall, plaintiffs added 725 defendants to patent litigation campaigns in Q4, down by 6% from the same quarter one year prior, 2% less than Q3 2022, and 10% below the trailing average.
See RPX’s fourth-quarter review for more on patent litigation trends, including a look back at 2023 in its entirety. More on the “Series of Extraordinary Events” involving IP Edge and Judge Connolly can also be found on RPX Insight.
