The European Unified Patent Court and Non-Practicing Entities: A Year of Early Evidence

Abstract

The debate on Non-Practicing Entities (NPEs) has primarily concerned U.S. patent policymakers, where most NPE lawsuits occur. However, with the introduction of the Unified Patent Court (UPC), European policymakers are now paying closer attention, as it could boost NPE activity by increasing the litigation value of patents.

In this article, I conduct an analysis of all infringement cases filed during the first year of operation of the UPC. I identify cases initiated by NPEs and collect details of the patents litigated and the companies involved. The main findings suggest that the UPC could become an attractive venue for NPEs to litigate their patents, particularly against large and non-European companies. NPEs initiate 13.0% of all cases, with their activity concentrated exclusively in the latter half of the year (December 2023 - May 2024), during which they represent 24.6% of total cases and 43.0% in the Electrical Engineering sector. In terms of patent characteristics, NPEs tend to litigate patents of lower quality than those pursued by other types of litigants.

Keywords: D23, 031, 034 Non-practicing entities, Patent, Patent litigation, European Unified Patent Court