At a recent summit in Napa Valley, Article One Partners surveyed 36 senior executives from large, IP – centric companies about the state of IP management in today’s world of dominant, litigation-prone non-practicing entities (NPEs). Here’s what they found: 1. Over 1/3 of the companies have 50 or more active IP litigation matters; 2. In the high technology industries, defending against suits brought by NPEs represented 75% of all active litigation matters; 3. More than 80% of IP legal budgets are used for litigation defense activities; 4. The majority of patent litigation matters take a year or more to settle, with 27% taking more than two years; 5. It costs companies an average of $1.1 million to defend just one NPE lawsuit.
Valuators detailing risks to high tech, biotech, and media and entertainment entities need to take into account NPEs specializing in those markets.