Many companies have engaged in high-cost patent infringement litigation, bolstering industry profit
New York, NY (PRWEB) May 15, 2014
The Trademark and Patent Lawyers and Attorneys industry is composed of lawyers and attorneys that engage in intellectual property due diligence, application and litigation. Improved research and development (R&D) expenditure has increased the number of innovative products and processes trademarked and patented through industry services. According to IBISWorld Industry Analyst Britanny Carter, “An increase in the number of patent assertion entities (PAEs) has forced many companies to engage in high-cost patent infringement litigation, bolstering industry profit.” As a result, revenue is anticipated to grow at an average annual rate of 3.9% to $2.1 billion during the five years to 2014.
Demand for litigation services has boomed over the past five years. According to the US Patent and Trademark Office (USPTO), the total number of active USPTO civil actions rose from 96 in 2009 to 200 in 2013. Moreover, the stakes have grown exceedingly high; only three patent infringement damages awards exceeded $1.0 billion prior to 2012, whereas three cases were awarded over $1.0 billion in 2013 alone. Potential infringement awards have incentivized many individuals and companies to patent ideas that they do not intend to manufacture or provide as a service. Ideas are subsequently purchased by PAEs, who generate revenue through licensing intellectual property and infringement award damages. According to the White House 2013 Patent Assertion and Innovation report, PAEs now account for about 62.0% of all infringement suits. “As the trend continues, increased litigation for patent infringement is expected to increase industry revenue 3.1% over 2014,” says Carter.
The America Invents Act of 2011 marks one of the largest changes to the US patent system since 1952. Falling in line with the majority of international patent laws, the act transitioned the US patent system from a “first to invent” to “first inventor to file” structure. To retain rights over existing projects, many companies hastily filed patents prior to the bill's enactment, and utility patent applications consequently rose 25.8% over 2010, boosting revenue 11.3% during the year.
Over the five years to 2019, Trademark and Patent Lawyers and Attorneys industry revenue is expected to increase. A growing number of new businesses, coupled with accelerated R&D expenditure, will increase the number of patents and trademarks that require industry services. In-house intellectual property teams, however, are anticipated to siphon demand for industry services.
For more information, visit IBISWorld’s Trademark and Patent Lawyers and Attorneys in the US industry report page.
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IBISWorld industry Report Key Topics
The Trademark and Patent Lawyers and Attorneys industry comprises legal practitioners, known as lawyers and attorneys, who engage in patent, copyright and trademark due diligence, filing and litigation. This industry does not include intellectual property licensing services and brokers.
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