US patent litigation against top automakers plummets by 37%

Auto IP executives have lengthy been warned concerning the rise of litigation and challenges forward of their trade. Nonetheless, 2023 supplied some respite because the variety of instances towards them in america started to recede.

OEMs and their Tier 1 suppliers coexisted in relative peace for many years, however the cellular communication and synthetic intelligence revolutions lately signalled {that a} reckoning was due. The notion was that the businesses controlling the mental property and know-how that allow the smartphone-like automotive might develop in affect in patent licensing within the automotive area.

Nonetheless, the variety of petitions filed by automakers on the PTAB noticed a slight enhance. Mercedes-Benz was significantly in a defensive temper, submitting 17 petitions – greater than double its 2022 case rely.

At IAM, we now have consulted Docket Navigator to look at the automotive trade litigation tendencies within the US and evaluate 2023 instances with our findings from earlier years. Our evaluation entails patent case counts within the district courts and PTAB for the 12 automakers who take advantage of income on the planet, and others who’ve vital market share in america. The numbers under compile case counts for these firms (and their subsidiaries):

• BMW
• Ford
• Normal Motors
• Honda
• Hyundai
• Mercedes-Benz
• Nissan
• Stellantis
• Subaru
• Tesla
• Toyota
• Volkswagen

Downward annual development in US district courts, upward within the PTAB

Determine 1 exhibits that within the US district courts (USDC), patent case counts had been 67 in 2022 and 43 in 2023, which is 37% decrease.

Nonetheless, within the PTAB, litigation filed by the foremost automakers noticed a slight uptick from 58 instances in 2022 to 60 in 2023, which is a 3% enhance.

The figures will please auto IP officers, after litigation towards automakers seemed to be on the rise in earlier years.

It could not symbolize a turning of the tide however, quite, a mirrored image of the notable drop in instances in 2023 within the USDC – which noticed an 18% decline in case filings in contrast with 2022.

Quarterly tendencies

The very best variety of patent infringement complaints towards prime automakers got here in 2022’s first quarter earlier than petering out by the tip of the 12 months. Nonetheless, in 2023 the variety of complaints elevated from the primary to 3rd quarters, adopted by a drop in This fall.

Determine 2 exhibits that 25 patent instances had been filed towards prime automakers in 2022’s first quarter. However within the first quarter of 2023, solely 5 USDC instances got here in – an 80% year-over-year decline. The 2023 numbers peaked at 18 instances within the third quarter earlier than ending the 12 months with one much less case than 2022. Within the PTAB, the variety of petitions filed dropped to its lowest in each years within the fourth quarter of 2023. It takes time for an accused infringer to organize an inter partes evaluation petition towards a patent after it has been asserted in a district court docket case. The PTAB rely is more likely to rise in response to the flurry of instances towards automakers within the district courts in 2023’s third quarter.

Determine 3 exhibits that PTAB petitions filed by prime automakers peaked in 2023’s second quarter with 32 instances (once they had been 146% increased than the year-ago interval).

Automakers’ litigation histories

We’ve additionally damaged down our research pattern to point out the variety of instances that every of the businesses on our checklist confronted in 2022 and 2023.

Determine 4 exhibits that 10 of the 12 automakers we studied had been concerned in fewer USDC litigations in 2023 than in 2022. Mercedes-Benz caught the most important break, going from battling 10 instances in 2022 to 1 in 2023, a 90% lower.

Nissan and Stellantis had a very quiet 12 months with no instances filed towards them, after preventing seven and 4 instances respectively in 2022.

Nonetheless, there have been two firms that bucked the development and noticed extra patent lawsuits in 2023 in contrast with the prior 12 months:

• Hyundai, which had three instances in 2022 and 4 in 2023; and
• Toyota, which had seven instances in 2022 and 9 in 2023.

We additionally examined every automaker’s PTAB instances from 2022 to 2023 to see who has been probably the most energetic.

Nissan, Stellantis and Subaru didn’t file any instances in both of the years and had been excluded from the info evaluation.

Determine 5 exhibits the exercise of the opposite 9 automakers. In 2023, Mercedes-Benz filed probably the most PTAB instances (17), a 143% enhance from when it filed seven instances in 2022. BMW was additionally extra litigious, going from 5 instances to 14, which is a 180% enhance.

Trying forward

It stays to be seen what 2024 will carry, however prime automakers now appear to be extra prepared to simply accept the brand new actuality. Avanci’s launch of its 5G auto licensing programme final 12 months with 58 licensors – practically 10 occasions the six licensors that the 2G to 4G pool began with – illustrates this level.

From the outset, Avanci had one vital confirmed licensee: Mercedes-Benz. Beforehand, the German firm that was initially named Daimler was one of many final holdouts on the 2G to 4G bundle, solely approaching board after litigation involving a number of Avanci members. This time round, it was first in line.

By November 2023, a complete of seven auto manufacturers had joined the 5G programme, together with Hyundai. This, although the rollout of 5G automobiles is in its early phases, bodes nicely for the automotive trade, which, previously, has been resistant to alter.