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The Truth Behind Patent Trolls Issue Brief (view source)
Revision as of 16:56, 23 March 2016
, 16:56, 23 March 2016→Why Patent Assertion Entities are Good for Innovation and Small Businesses
The patent market is illiquid, which means that assets cannot be sold or exchanged easily. In illiquid markets, specialized intermediaries, like patent assertion entities, can help match patent holders to patent buyers and transfer ideas and technology from inventors to manufacturers effectively. [https://www.whitehouse.gov/sites/default/files/docs/patent_report.pdf] This allows inventors to focus on innovation and benefit from the knowledge and connections that intermediaries have. [https://www.whitehouse.gov/sites/default/files/docs/patent_report.pdf] Patent assertion entities are able to incentivize innovation through the effective brokerage of patents. [https://www.whitehouse.gov/sites/default/files/docs/patent_report.pdf] They manage risks for small inventors and inform manufacturers or inventors of the usefulness of having another inventor's patent in their patent portfolio. [http://www.bna.com/challenges-of-defining-a-patent-troll/]
Patent assertion entities that do not engage in abusive litigation are often burdened by the association with the term "patent troll." [http://www.bna.com/challenges-of-defining-a-patent-troll/] Proposed patent legislation in the 114th Congress fails to make a clear distinction between PAEs and patent trolls. The House Innovation Act (H.R. 9) and the Senate PATENT Act (S. 1137), two major bills proposing patent reform in the current Congress, do not differentiate between legitimate patent holders and patent trolls and threaten to make litigation even costlier more costly and riskier risky for all patent holders.
==Are Patent Trolls Really that Big of a Problem?==
