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The Truth Behind Patent Trolls Issue Brief (view source)
Revision as of 16:14, 23 March 2016
, 16:14, 23 March 2016→Why Patent Assertion Entities are Good for Innovation and Small Businesses
The current U.S. patent system restricts the market for innovation with high transaction costs and legal risks. [http://www.wired.com/2015/01/fixing-broken-patent-system/] Most small and medium-sized businesses are unable to afford the costs associated with potential patent litigation, which prevents the commercialization or licensing of over 95 percent of current active patents. [http://www.wired.com/2015/01/fixing-broken-patent-system/] Therefore, smaller-sized businesses must rely on patent assertion entities to protect their patents and defend against expensive litigation. Patent assertion entities aggregate and manage patents and have the expertise to legitimately protect patents from infringement. [https://www.whitehouse.gov/sites/default/files/docs/patent_report.pdf]
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 have the ability are able to incentivize innovation through the effective brokerage of patents. [https://www.whitehouse.gov/sites/default/files/docs/patent_report.pdf]
==Are Patent Trolls Really that Big of a Problem?==
