Tuesday, March 24, 2015

Patent Trolls in the News

Patent Trolls in the News

This blog post will outline the relationship between corporations and patents, specifically how they are being challenged and how they are overcoming issues with patents.

Patent infringement lawsuits filed by non-practicing entities, also known as patent trolls, continue to rise in the U.S. For example, in 2013, AT&T was sued for patent infringement by so-called patent trolls a startling 54 times -- more than once a week, according to recent statistics.

Fortune recently published the 2013 list of top 10 patent troll targets, writes that the top patent litigation related companies include “AT&T, fighting 70 active cases as of the publication date. Next in line is Google, which was hit with 43 suits last year; Verizon, 42; Apple, 41; Samsung and Amazon, which were hit with 39 each; Dell and Sony, hit with 34 each; Huawei, hit with 32; Blackberry, hit with 31.”

The article in Howstuffworks writes that “In response to the patent troll threat, large companies have purchased their own patent portfolios. For example, Apple, Microsoft, Nokia and others paid $4.5 billion for the patents of the bankrupt company Nortel. The patents help them to fight suits and can be used to threaten other companies to ward off litigation. However, this defensive strategy does little to promote new ideas. It might even tempt these corporations to engage in troll-like behavior themselves.” I agree that this can be a good defensive strategy but do not necessarily agree with the prediction on how it can reduce innovation.


My opinion is that when companies aquire their own patent portfolios, it will not hinder innovation because now, the company has access to many patents that it can use to build and improve upon on. Further, many technology companies need to always innovate and make new products and patents because that is one of the primary drivers of their success. Tech companies need to come up with new breakthroughs if they want to reach the top of the market or remain at the top of the market.



Sources



6 comments:

  1. Sean,

    Great job on this post as well! I really liked how you looked at all corporations in regards to patents. When I was doing my research as well, I also discovered that large technology companies like Apple, Google, etc are building their own patent portfolios- so it is not just NPEs who do this. I fully agree that getting more patents does not hinder innovation but allows them to build on it. Fantastic post and a great read!

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  2. I like that you provided insight on the company side, rather than the patent troll side. I also admire that you used more than one source and incorporated information from a variety of resources.

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  3. Hi Sean,
    Great organization of your blog post, starting off with the amount of patent infringement claims each of these large powerful companies face and then leading into your own interpretation of their defensive strategies to combat these attacks by purchasing patents. It is important for companies to try to protect themselves from attacks and be informed of patents that could hurt them and purchase patents for protection.

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  4. Hi Sean,

    It was very interesting to see how companies are defending themselves against patent trolls by acquiring their own patent portfolios. It was also astonishing to see how many large companies are affected by a myriad of patent litigation lawsuits each year! Very enlightening post! Great work!

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  5. Sean,
    I loved this post. I feel like you did a good job of making your pint s succinct but still managed to develop an argument around it. I especially liked the points you made about the not hindering innovation.

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  6. Sean,

    I like your commentary on patent litigation at the end. I agree - this may not be the biggest issue if tech companies were making huge breakthroughs.

    Sasha

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