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PAE litigation increased with the 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]
 
Small firms produce more patents per employee than large companies and help drive innovation in the United States economy. The patents they develop have a greater impact and are often more technologically important than the patents of large firms.
==Are Patent Trolls Really that Big of a Problem? + Why Stricter Demand Letter Requirements Isn't the Solution==
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