The Emerging Perils of Patent Trolls

Patent trolls an increasing irritant factor coming to the periphery of the Indian market, is an issue that has grabbed the attention of many in the last two years.

With many such cases not pointing any one case, in particular, shows the intention of the patent troll companies i.e. to mint quick money from software companies and covering other avenues slowly using cease and desist.

In other words, there are a couple of companies which vend their patents to big firms, who on the other hand hide this information from the public and bring this to light at a suitable stage by insinuating on other companies who are using their technology as their own invention and filing infringement case against them.

What likely can be the causes of patent trolls?

Bankruptcy or auction is the possible reason of patent trolls. Companies who face the following situations have to, unfortunately, sell their patents to other firms, who purchase hundreds of such patents from different companies.

The cost, risk and level of uncertainty while defending a patent troll case by a defendant is quite high; the chances of defendant ending up of losing the patent are also high. Defending a patent lawsuit is not recommended for the timorous and the trenched pocketed ones.
 

There have been patent troll strikes, against the importunate of large royalties by these Non- practicing Entity.

What are the effects of patent trolls?

These so called non practicing entity have major effects like

  1. Sidetracking the key executives and employees from burgeon of new technologies. It is also divertissement for the other investors.
  2. They are in spot to confer licensing fees that are grossly out of calibration with their contribution to the averred offender’s product or service.

How do these patent trolls operate?

Patent trolls work like any other company but with the motive to obtain money from existing uses and not from new applications for the technology. They monitor the market conditions with the aim of transgressing technologies by watching popular product news coverage and analysis. To proceed further, they make a strategy of using a particular small company who has much to lose and less money to contest so that they may fall prey to the masterminds by losing a prospective legal battle. They attack with the aim to acquire an entire industry at once.

What are the possible methods to get these cases resolved?

A system has to be set up, where one can more easily have patents that were issued foolishly to be reconsidered and hopefully be downsized or outmoded if they are not valid or poorly written.


Related Articles