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Most of the available evidence on patent assertion entities (PAEs) is coming from the United States, while little is known for Europe. The up-coming Unitary Patent (UP) and the Unified Patent Court (UPC) system are considered to be game-changing elements for strategic patent options and for patent assertion activity in Europe. Many patent practitioners are watching Europe as the future market place for patenting. PAE activity in Europe is increasing and one reason for this trend is that PAEs originating from the United States are becoming more active in Europe. In the future, fuzzy boundaries of patent claims in general and of software-related claims in particular, new combinations of technologies and enhanced interoperability under the schemes of Industry 4.0 and the Internet of Things could attract PAE activity in technological fields where it has not been seen before. Altogether, some of the features of the new UPC have the potential to play into the hands of PAEs in Europe. The future will much depend on the implementation of the new UPC system, how the different divisions of the court will establish case law decisions and how PAEs will make use of the new system. The intention of the article is to provide an overview of ongoing PAE activity in Europe and to assess the future strategic options of PAEs in Europe based on the design of the new UP and UPC system. [ABSTRACT FROM AUTHOR]

The US has made significant progress in the patent legislation landscape as evidenced by the US Patent Act in the Constitution and America Invents Act (AIA) of 2011. Nevertheless, patent suits by non-practicing entities (NPEs) have been on the increase over the past ten years. Major corporations, especially, such as Apple and Samsung have been on the receiving end of the litigation as NPEs target their large cash holdings. A closer look at the patent laws in the US and Europe reveals subtle differences in the grace period, publication of patent, and the application of patent rights across member states. Given the preceding facts, vital action points for the European market include the enactment of laws that prevent patent trolls as opposed to punishing NPEs after the act and reduction of litigation costs for lowquality patents. [ABSTRACT FROM AUTHOR]

The EPO and the Unified Patent Court will ultimately determine the balance between the strength of patent rights and patent quality in the new system. In 2012, the EU voted in favor of a process that contains a European patent with unitary effect, a language regime, and a single patent jurisdiction, the Unified Patent Court. More than a decade after its approval, a new patent system came into effect last month, which some European Union (EU) countries already have signed on to. [Extracted from the article]

• This study examines the characteristics of patents held by NPEs registered as dormant companies in the UK. • Portfolios of NPEs registered as dormant companies in the UK consist mainly of patents of similar quality than the average but at higher risk of being infringed and litigated. • The case study of Dragon Green Development Balboa SA allows a better understanding of how some NPEs can exploit informational frictions in both corporate and patent markets in order to litigate and monetize patent assets in Europe. While various studies in the fields of law and economics have analysed the business models of patent aggregators and large non-practicing entities (NPEs) in the US, small NPEs operating in Europe typically escape academic and media attention. Here, to address this imbalance, we specifically identify and characterize the patent portfolios of NPEs registered as dormant companies in the UK and investigate whether they are created for the purpose of acquiring valuable IP assets or launching litigation campaigns. Our econometric analysis – based on more than two hundred NPEs registered as dormant companies in 2019 – supports the second hypothesis. Finally, as an illustrative example of how small NPEs use UK dormant companies to acquire and litigate patents in Europe, we describe the business model of Dragon Green Development Balboa SA, an entity incorporated in the Republic of Panama that controls thirteen UK dormant companies and which is involved in fourteen patent litigation cases in Germany. [ABSTRACT FROM AUTHOR]