Lawsuits brought by non-practicing entities (NPEs)—organizations that do not make or sell products, but collect patents often for the purpose of suing operating companies—are a regular and substantial cost of doing business for many companies of all sizes.

Notably, a majority of patents asserted by NPEs were once owned by operating companies. The Freedom Agreement is a creative solution to reduce the risk of NPE patent suits based on patents once owned by operating companies.

 

Impact of NPE Suits By the Numbers

The Problem
Patent litigation has more than quadrupled over the past 20 years
69% of the patents used by NPEs to sue operating companies come from other operating companies
The Problem
Nearly two-thirds of all patent suits are filed by NPEs
NPE litigation cost operating companies $7.4 billion in 2015