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  • 1. PATENT TROLL DHANYA N. MENON ATTORNEY
  • 2. 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.”
  • 3. 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.”
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. WHO ARE NOT?
    • University holding patents: Though non practicing entities
    • Individual Inventors who licenses his invention to others for commercialize
  • 8. 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
  • 9. WHO HELPS?
    • Inefficiency in the patent system
    • - Excessive damages
    • - Patentee friendly injunction
    • - Generous granting of patents
    • - Disclosure – not practice that grant
    • monopoly
  • 10. 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
  • 11. 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.”
  • 12. 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.
  • 13. Thank You