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Patent Lawsuits as Business Model Erodes as Rules Tighten

Companies that build their business models around aggressive patent litigation are discovering that approach is less lucrative after a U.S. Supreme Court ruling and stricter government policies.

Total patent lawsuits filed in the third quarter declined 23 percent from the second quarter, according to the industry coalition Unified Patents. About 88 percent of the drop is because of fewer cases by companies that make more than half their revenue from patent licensing and who sue companies in the computer, electronics and software fields, the group said yesterday.