In this ever-evolving IP landscape, it is critical for businesses to consider assessing their risk exposures and management strategies. Considering the escalating risk of patent infringement, companies should ensure an effective risk management strategy for the future in order to protect some of their most valuable assets. Every year, billions of dollars of monetary damages are being slammed to various businesses as litigation costs. In 2023, a federal jury in Salt Lake City sat through a two-week trial over whether Dish Network infringed ClearPlay’s patents related to technology. The jurors found non-willful infringement and were awarded $470 million.
Key Takeaways
1. A spike in IP patent litigation suits filed by non-practicing entities (NPEs) and an upward trend in damages awarded indicate shifting risk exposures.
2. The new legislation would impact European businesses—both nationally and globally.
3. Complications created by AI in IP litigation cases with technical intricacies, challenges explaining concepts, ethical dilemmas, ownership disputes over AI-generated content, privacy issues, and decision-making, among others.
Three Litigation-related Trends to Witness in 2024
1. NPEs majorly driving the IP litigation trend
Although the severity of monetary damages attained new highs, the actual number of patent cases declined in 2023. On the contrary, the percentage of cases filed by non-practicing entities (NPEs) has steadily increased since 2018, contributing to almost 50% of total cases filed last year. The significant upsurge in NPE activity indicates that the type of IP patent litigation exposure is changing. Cases filed by NPEs are hard to defend against since traditional methods, such as maintaining a robust IP portfolio to countersue, tend to be of no use.
2. Evolving technology trends will fuel such activities across different sectors
Technology industries tend to be the major target in patent litigation cases, especially those enterprises that could be mapped to an industry. These tech industries include computers & electronics, networking and communications, software & data processing, and semiconductors. Also, the automotive industry has seen steady growth in terms of the number of suits, as reported by IeB experts. Other industries witnessing an increase in such cases include B2B services and retail.
3. AI’s adverse impact in the realm of patent litigation
While AI can bring numerous benefits to various industries, including legal practice, it begets potential challenges in intellectual property (IP) litigation. The complexity of AI technologies, marked by intricate algorithms and technical nuances, introduces a potential hurdle as legal professionals may struggle to grasp these complexities, leading to misinterpretations in the litigation process. Expert witnesses face challenges in effectively communicating highly technical aspects to a non-technical audience, impacting the quality of testimony. Disputes over ownership and copyright of AI-generated content further complicate litigation, requiring intricate legal processes to determine origin and ownership. Ethical concerns, including biases in algorithms and potential misuse of AI-generated content, introduce additional layers of complexity in IP cases. Privacy issues arising from AI technologies, coupled with the inflated cost of implementation, create a potential imbalance favoring well-funded entities in IP litigation. The fast-paced evolution of AI may outstrip the legal system’s ability to adapt, resulting in inconsistent rulings and legal uncertainty in IP cases involving AI.
Adjust Your Risk Management Strategies with Patent Consulting Solutions Offered by Ingenious e-Brain
IP litigation emerges as a major hurdle for substantially growing entities. As the NPEs’ activities are likely to continue in the coming years, the types of risk exposures are evolving. A shift from corporate litigation to NPEs is making litigation more difficult to predict.
Explore how to help maximize the value of your IP, align IP with your business strategy, assess and mitigate risk, and capitalize on investments by filling out the below form or emailing our experts at contact@iebrain.com.
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