Innovation Asset Blog

Study: Patent holders have two-thirds win rate at trial

Some intellectual property infringement cases never make it to trial. When they do, however, the patent holder has a very good chance of winning, according to a recent PricewaterhouseCoopers study.

The study examined patent damages from 1980 to 2009 and recorded trends in patent holder success rates, time-to-trial statistics and variations in results between practicing and nonpracticing entities.

According to the study, once a case reaches trial, the patent holder has a 66 percent chance of winning. This holds true whether or not the patent holder is a practicing or nonpracticing entity.

Practicing entities, however, are more likely to reach trial than nonpracticing entities, resulting in a higher proportion of successful cases overall. The study found practicing entities are successful in 40 percent of cases altogether, while NPEs succeed in 31 percent of cases.

Effective intellectual property management has been recognized by many as a valuable tool for ensuring the profitability of innovation. According to statistics recently published by Fairview Research, 2010 saw a 31 percent increase in the number of patents registered in the U.S.

Peter Ackerman

Peter Ackerman

Founder & CEO, Innovation Asset Group, Inc.