Study: Alice v. CLS Bank led to a strong increase in subject matter patent invalidations

The Supreme Court’s decision in Alice Corporation v. CLS Bank International, a case involving computer software, has led to a marked increase in patents being invalidated under Section 101 of Title 35 the United States Code covering subject matter eligibility.

The findings are part of “2014 Patent Litigation Year in Review,” just out from Lex Machina, the litigation analytics firm.

fig 37

Surprisingly, according to the findings in the report, median damages awards based on reasonable royalties paid in 2014 was $3M based on 25 cases. This was the second highest amount since 2000, with only 2009 being higher.

39% of IPRs Settled before a Final Decision

The Lex Machina 2014 review indicates that of the 503 IPRs terminated between 2012 and 2014, 196 or 39% were settled before a final decision was made by the PTAB. (See figure 47 below.)

The 2014 litigation report examines the key axes of legal data and their interactions, drawing upon Lex Machina’s platform that combines data from PACER, PTAB, the U.S International Trade Commission (ITC) , and the U.S. Food Drug Administration (FDA) Orange Book on abbreviated new drug applications (ANDAs).

fig 36

IPCU readers interested in receiving “2014 Patent Litigation Year in Review” can follow the link here.

fig 47

Lex Machina also recently announced the launch of Legal Analytics for trademark and copyright cases, which affords lawyers insights into the behavior of district court judges, opposing parties, and opposing counsel, enabling them to gain competitive advantage in trademark and copyright litigation.

Image source: Lex Machina

About Bruce Berman

IP trend spotter, consultant and author.

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