Thursday, July 24, 2014

Patent Trolls go after deep pockets, avoid strong legal teams

Coastal California, East Texas, Chicago, New York Metro,
and Massachusetts are Patent Litigation Hotbeds
Research Roundup: Patent Trolls, R&D Partnerships, and Innovation

The authors of this study wanted to better understand the behavior of non-practicing entities (NPE), more commonly known as patent trolls.  The authors use data from PatentFreedom,- an online organization composed of companies that contribute information about patent ownership and enforcement.  They appended the data from PatentFreedom with court records for patent lawsuits. They build a strong case that NPEs are acting as trolls that   disincentivize innovation.
Main Takeaways:
  • NPEs target successful companies-
  • NPEs avoid firms with large legal teams.
  • The Number of NPE suits is increasing.
  • NPEs stifle innovation.

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