The number of new patent lawsuits filed in 2024 increased by 22.2% compared to 2023, which was particularly slow. After a rule change made another Texas district less appealing to plaintiffs, the Eastern District of Texas became even more popular for patent cases.
Last year, 3,806 new patent cases were filed in U.S. district courts—almost 700 more than in 2023, which had the fewest new cases in over ten years, according to a new report from Lex Machina. The 2024 total was similar to the number of cases filed in 2021 and 2022.
Finnegan partner James Barney told Law360 that the low number of suits in 2023 was likely a statistical anomaly, because a consistent trend over the past several years has been a growing interest from litigation funding companies in backing patent cases.
That "has proven to be a successful business model, and so you're getting more and more players entering the litigation funding market, including from outside the U.S.," he said. "And I think in general, that is just fueling more and more patent assertions."
The Lex Machina report also showed a surge in design patent suits. There was an increase from 295 suits in 2022 to 459 last year, marking a 55.6% jump. This increase may be the reason the Northern District of Illinois, a popular venue for cases to be filed, received the second most patent suits of any district in 2024.
Finnegan partner Beth Ferrill said those suits have come under greater scrutiny in recent months, with some judges questioning if the companies listed on the attachment are related enough to be joined in one case under federal rules and if the case should be dismissed.
"I really think it's a docket control issue," she said. "I think they have so many cases now that they're trying to figure out how to deal with them, and this is one of the ways they're dealing with it."
Read “New Patent Cases Rebound as EDTX Seals Top Venue Spot”
