Presentation to the Dec 10, 2012 DOJ/FTC Hearing on PAEs with Slide 24 added for context

Colleen V. Chien, Santa Clara Law School


The DOJ and FTC are holding a hearing on patent assertion entities. This talk gives an overview of the economics, policy of patent assertion entities drawing upon previous and new empirical work. Using pathbreaking, disruptive techniques and capturing economies of scale, PAEs drive down the cost of patent enforcement. PAEs have brought 61% of all patent litigations to date in 2012 against fewer overall defendants than in 2011, due to changes in the law. 76% of PAE defendants were sued by a PAE that sued more than 15 defendants, and 61% were sued by a PAE that had brought 8 or more cases. These and other details about their business model, practices, and policy concerns are discussed in this powerpoint presentation.