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Patent troll
 

Patent troll

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    Patent troll Patent troll Presentation Transcript

    • PATENT TROLL DHANYA N. MENON ATTORNEY
    • PRINCIPLE OF PATENT LAW “ A Patent Not Only Prevents The Imitation Of The Patentee’s Technology But Also Limits The Ability Of Inventors To Develop And Market Their Own Technologies.”
    • DEFINITION “ A patent troll is somebody who tries to make a lot of money off a patent that they are not practicing and have no intention of practicing and in most cases never practiced.”
    • WHO/WHAT?
      • A person or entity
      • Acquires ownership of a patent
      • Without the intention of actually using it to produce a product
      • “ nonproducing entity”, “nonpracticing entity”, “Patent Shark”
      • Buyers as well as sellers
    • THEY DO?
      • Procure patents
      • Licenses the technology
      • Identifies the ingringers-Sues an entity
      • Only enforce patents against the alleged infringers
      • Interested in exclusion right; not in the underlying knowledge.
      • Only concern is of the damages or settlement payment
    • THEY DON’T DO?
      • Manufacture products
      • Commercialize the process
      • Transfer the technology
      • * * *
      • Though the inventions are not copied, but developed independently, patent suits can be brought
    • WHO ARE NOT?
      • University holding patents: Though non practicing entities
      • Individual Inventors who licenses his invention to others for commercialize
    • THREE STRATEGIES
      • Injunction based strategy: Under legal threat of an injunction - seeks a favorable settlement
      • Damages based strategy: damages awarded by the court for infringement
      • Switching-cost based strategy: exploits the high cost for switching to a non-infringing technology
    • WHO HELPS?
      • Inefficiency in the patent system
      • - Excessive damages
      • - Patentee friendly injunction
      • - Generous granting of patents
      • - Disclosure – not practice that grant
      • monopoly
    • TROLL PATENT ?
      • Is owned by someone that does not practice the invention
      • Is infringed by, and asserted against, non-copiers exclusively
      • Has no licensees practicing the particular patented invention except for defendants)
      • Is asserted against a large industry
    • TROLLS AND INJUNCTION
      • General rule: “courts will issue permanent injunctions against patent infringement absent exceptional circumstances”
      • eBay Inc. v. MercExchange, L.L.C ., US Supreme Court rejected this general rule.
      • Reason: “An industry has developed in which firms use patents not as a basis for producing and selling goods but, instead, primarily for obtaining licensing fees.”
    • TROLLS & DAMAGES
      • Patent Troll v. Apple
      • NTP- Patent – wireless
      • e mail technology – files suit –
      • unfairly using their technology – in 2006 – similar suit – Research in Motion – paid $612 million to NTP – does not produce or offer any wireless e mail software services.
    • Thank You