Norton Rose Fulbright Survey Reveals Rising Patent and AI-Driven IP Litigation Risks for 2025

Norton Rose Fulbright’s 2025 Annual Litigation Trends Survey indicates that 25% of respondents experienced an increase in intellectual property (IP) dispute exposure over the past year. A similar proportion, 26%, expect their IP exposure to rise further in 2025.

Patents remain the predominant source of this growing exposure. Nearly half (46%) of those reporting increased IP vulnerability last year attribute it to patent disputes. Trade secrets are also a significant concern, cited by 44% of respondents, as organizations seek to safeguard proprietary information amid potential limitations on noncompete agreements.

Among respondents anticipating greater IP exposure in 2025, a majority express a strong likelihood of engaging in IP enforcement litigation within the next 12 months. Specifically, 33% are somewhat likely and 55% very likely to initiate such actions.

The motivations driving potential enforcement lawsuits include protecting IP rights (68%), maintaining brand integrity (55%), and preserving competitive advantage (51%). Additional factors influencing litigation decisions are monetizing IP assets (48%) and deterring future infringement (45%).

The survey also highlights the impact of artificial intelligence (AI) on IP litigation risk. With AI tools raising complex questions about ownership and copyright, plaintiffs filed numerous lawsuits last year alleging infringement related to AI training data. More than half (55%) of respondents expecting increased IP exposure cite AI technology use as a contributing factor, marking it as the leading concern for the second consecutive year.

Concerns extend beyond unauthorized use of user data in machine learning algorithms. AI also poses risks when users input sensitive or proprietary information into these tools. Furthermore, reliance on third-party software or components, including free AI tools, is a significant driver of dispute exposure, noted by 47% of respondents forecasting increased IP risk.

Cybersecurity and data privacy disputes have also intensified, with 36% of respondents reporting greater exposure over the past year.

Consumer protection class actions remain prevalent, cited by 41% of those who experienced such litigation in 2024, consistent with prior years.

Environmental, social, and governance (ESG) related exposures are on the rise as well. Respondents expecting growth in ESG disputes point to pressures from both pro-ESG and anti-ESG stakeholders as key contributing trends.

The average number of litigation proceedings per respondent increased to 4.4 in 2024, up from 3.9 the previous year. The median number of proceedings rose from one to two.

Preparedness for IP disputes has improved, with the share of respondents rating themselves as "very prepared" climbing 14 percentage points to 43%, returning to levels seen in the 2023 survey.

In Canada, regulatory developments signal a pivotal moment. Businesses in energy and infrastructure sectors face increasingly complex rules, more stringent compliance demands, and challenging jurisdictional differences.

Effective regulatory risk management is becoming critical for success in life sciences and healthcare industries. Properly executed, risk management can drive sustainable growth beyond mere compliance.

At the provincial level, new legislation is being introduced and existing laws refined. Federal reforms are anticipated, though their timing and scope remain uncertain.

These findings from Norton Rose Fulbright underscore the evolving landscape of IP litigation risk, driven by technological innovation, regulatory change, and shifting enforcement priorities. Organizations are advised to proactively address these challenges through strategic IP enforcement and comprehensive risk management frameworks.