Changes

Patent Trolls are an innovation bogeymen. Numerous research articles and legislation have been focused on ways to curb troll activity, making patent trolls one of the most publicly denounced issues in the patent system. Experts dispute terms for such corporations, labeling them as either Patent Assertion Entities (PAEs) or Non-Practicing Entities (NPEs). PAEs are defined by the FTC as companies that earn revenue by purchasing patents and accusing companies using those patented technologies of infringement.[https://www.ftc.gov/policy/studies/patent-assertion-entities-pae-study] NPEs are firms that rely on Patent Licensing activities for revenue. [http://www.unifiedpatents.com/news/2016/5/30/2015-patent-dispute-report] Patent litigation involving NPEs in 2015 accounted for approximately 67% of cases reviewed by District Courts. The high-tech sector is highly vulnerable to NPE lawsuits as 88% of high-tech patent litigation in 2015 was related to NPEs.<ref name="unified" /> Patent Trolls generate revenue through suing or threatening to sue businesses that infringe on patents. Typically, the damages asked for by Patent Trolls are far beyond the market value of the patent in order to scare small businesses in the initial demand letter, when pressing them to pay the fee to license the patent.

Some economists and legislators have advocated for a prize system instead of a patent system for pharmaceutical drugs (see [[Medical Innovation Prize Fund Act]]) given the potential for price hiking and deterring R&D in our current patent system.<ref name= "Radical" /> Legislators have proposed bills that provide for prize systems for a small class of drugs (see [[Prize Fund for HIV/AIDS Act]]). Under this system, companies that invent a new drug will receive a lump sum prize from a pool of up to $3 billion per year and no right to exclude would be awarded to the company. The money for the prize pool would be provided by the federal government and insurance companies. A panel of experts would determine which drug performs the best allowing research to be targeted towards a specific problem. <ref name = "Radical" /> Proponents of the HIV/AIDs Act including Bernie Sanders suggest that the prize system may lower barriers to entry and allow nontraditional parties to participate in finding a needed solution.