Research finds companies just pre- and post-IPO are at highest risk of being targeted by a non-practicing entity lawsuit

A HighTech-Solutions (HTS) study, commissioned by the international, non-profit patent licensing platform LOT Network, analyzed the 6,161 lawsuits filed by non-practicing entities (NPEs) from 2017 through 2022. The analysis identified several key findings.

First, the study found that companies who are preparing for or have just announced an IPO are at a greater risk of being sued by a non-practicing entity (NPE) than other businesses. HTS identified and analyzed 247 companies, among the overall universe of NPE targeted firms, that went public during the period 2012 – 2022, and found 36.9 percent experienced one or more cases of NPE litigation between two years prior to and two years after an IPO.