NPEs Drive Retail Patent Litigation Spike in February 2026
NPEs sharply escalated patent litigation against major U.S. retailers and supply networks in February 2026.
Why it matters: Retail industry legal teams face intensifying legal and financial risks as non-practicing entities (NPEs) accelerate their patent enforcement. Tracking where and how NPEs litigate can help guide risk assessments, budgeting, and defensive strategies for in-house and outside counsel.
- In February 2026, NPEs such as VDPP, AML IP, and Portus Singapore launched major campaigns targeting retail sector defendants.
- NPEs added 495 defendants to litigation in Q1 2026—10% above the prior three-year Q1 average, despite an 18% drop from Q1 2025.
- Texas courts saw 63% of all NPE filings in Q1 2026, concentrated in four districts.
- Eight of the top ten district court patent plaintiffs in Q1 2026 were NPEs, reflecting ongoing dominance.
A surge of new patent litigation from non-practicing entities (NPEs) struck U.S. retailers and supply chains in February 2026, according to recent industry analyses. Filing campaigns were led by NPEs including VDPP, AML IP, Andra Group, Piney Woods Mobility, Portus Singapore, DataCloud Technologies, and Calibrate Networks (LexBlog).
- In Q1 2026, NPEs named 495 defendants—up 10% compared to the Q1 average from 2023–2025, even as the total number of new cases dropped 18% from Q1 2025 (RPX Corp).
- Texas remains a focal point, hosting 63% of NPE filings across only four district courts (Unified Patents).
- NPEs filed 53.2% of all district court patent cases and were responsible for 90.3% of high-tech patent litigation in Q1 2026.
- Procedural denials at the Patent Trial and Appeal Board (PTAB) fell by 25% since last quarter, while pending PTAB petitions dropped to a 12-year low of 815 in March. Meanwhile, ex parte reexamination requests spiked over 150% from Q1 2025, signaling shifting defense strategies.
- Eight out of the top ten district court plaintiffs for Q1 2026 were NPEs, confirming their persistent leadership in patent enforcement efforts.
These trends highlight significant ongoing risk and budget pressures for in-house retail counsel monitoring patent enforcement, defense settlements, and compliance obligations (LexBlog).
By the numbers:
- 495 — Number of defendants added by NPEs to patent litigation in Q1 2026
- 63% — Share of NPE actions filed in Texas district courts in Q1 2026
- 150% — Rise in ex parte reexamination requests from Q1 2025 to Q1 2026