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The Truth Behind Patent Trolls Issue Brief (view source)
Revision as of 16:14, 25 March 2016
, 16:14, 25 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 while benefiting from the knowledge and connections that intermediaries possess. [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/]
PAE litigation rose increased with the increase rise of technological innovation in the twenty-first century, but this does not mean that they have stifled innovation with more litigation. Rather, patent assertion entities lose 92 percent of trial cases based on merits. [https://www.fas.org/sgp/crs/misc/R42668.pdf] Some believe that this is a sign that PAEs do not have valid claims to the patents they possess; however, PAEs fail trial cases because they do not properly show infringement. Because PAEs do not manufacture or sell products, they are not liable to counterclaims. This makes them more likely to make weak infringement claims, which leads to a lower-than-average success rate in cases ruled on merit. [https://www.fas.org/sgp/crs/misc/R42668.pdf]
==Are Patent Trolls Really that Big of a Problem? + Why Stricter Demand Letter Requirements Isn't the Solution==
