In Managing IP Article, Dan Altman and Zachary Grinovich Assess Potential Impact of NPEs at the Unified Patent Court

In the article “NPEs in the new UPC patent landscape,” written by Knobbe Martens partner Dan Altman and associate Zachary Grinovich and published by Managing IP, the authors explore how non-practicing entities (NPEs) might tailor their patent litigation strategies to Europe’s newly launched Unified Patent Court.

According to Altman and Grinovich, NPEs – sometimes known as ‘patent trolls’ – have found success in US courts by employing a “nuisance model” which often results in targeted companies paying a settlement to the NPE. Due to a number of differences in the US and EU legal systems, this strategy would likely not reap the same benefits at the UPC. However, the authors maintain, “While it is true that the nuisance settlement strategy commonly employed by NPEs in the US is largely ineffective in the EU, entities have adapted other assertion strategies in view of the procedural and substantive frameworks that exist there. In brief, the strategy that many NPEs have adopted in the EU is based on the ability to obtain injunctions for use in settlement negotiations.”

Altman and Grinovich conclude by acknowledging that as the UPC is recently established, the first decisions from the new court in the coming year will offer further insight into the capabilities of NPEs within the court. They write, “NPEs will be paying close attention as the first wave of forthcoming UPC decisions shed light on the approaches that the court will take. Companies concerned about NPEs would be wise to pay similar attention.”

Read the full article here.