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IT’S A TRILOGY! (More on Patent
Trolls…)
-Kate Kotler, Writer

March 5, 2014
While	
   following	
   up	
   on	
   our	
   ongoing	
   coverage	
   of	
   the	
   proposed	
   patent	
   troll	
   reform	
  
legisla=on	
   snaking	
   through	
   Congress,	
   we	
   stumbled	
   across	
   the	
   following	
   ar=cle	
   on	
  
CNN.com:	
  

Opinion:	
  Not	
  all	
  patent	
  trolls	
  are	
  demons	
  by	
  Timothy	
  Holbrook	
  
Duh,	
   some	
   of	
   them	
   are	
   homunculi!	
   (Patently	
   -­‐pun	
   intended-­‐	
   stolen	
  
from	
  fusillade762	
  on	
  Fark.com)	
  
The	
  crux	
  of	
  the	
  opinion	
  piece	
  is	
  that	
  while	
  the	
  media	
  is	
  busy	
  “demonizing”	
  Patent	
  
Asser=on	
   En==es	
   (or,	
   PAEs,	
   the	
   polite	
   way	
   of	
   saying	
   “patent	
   troll”)	
   that	
   many	
   of	
  
these	
  companies	
  actually	
  serve	
  a	
  valuable	
  business	
  purpose	
  and	
  are	
  one	
  of	
  the	
  only	
  
solid	
   channels	
   bootstrapped	
   inventors	
   have	
   of	
   seeing	
   monetary	
   return	
   for	
   their	
  
crea=ons:	
  

Rules	
  of	
  a	
  Trilogy	
  (Scream	
  3)

“What	
   is	
   lost	
   in	
   this	
   mudslinging	
   is	
   that	
   much	
   of	
   what	
   PAEs	
   do	
   is	
   laudable	
   —	
   paying	
  
inventors.	
   Patents	
   don’t	
   grow	
   on	
   trees.	
   Someone	
   came	
   up	
   with	
   the	
   inven@on	
  
and	
  incurred	
  considerable	
  expense	
  to	
  obtain	
  the	
  patent.	
  Many	
  inventors	
  can’t	
  bring	
  
their	
  inven@on	
  to	
  market	
  themselves,	
  however,	
  so	
  selling	
  the	
  patent	
  may	
  be	
  the	
  only	
  
way	
  for	
  them	
  to	
  make	
  money.	
  By	
  buying	
  these	
  patents,	
  PAEs	
  compensate	
  inventors,	
  
one	
  of	
  patent	
  law’s	
  objec@ves.”
Mobile Marketing Agency
While	
   this	
   is	
   an	
   interes=ng	
   flip	
   side	
   of	
   the	
   patent	
   troll	
   coin	
   to	
   consider,	
   it	
   seems	
   to	
   us	
   that	
   altruis=c	
   PAEs	
  
comprise	
  a	
  small	
  minority	
  of	
  the	
  larger	
  patent	
  acquisi=on	
  community	
  and	
  while	
  Congress	
  should	
  consider	
  the	
  
legi=mate	
  business	
  purposes	
  of	
  this	
  segment	
  (and,	
  make	
  sure	
  their	
  ac=vi=es	
  are	
  protected),	
  they	
  s=ll	
  should	
  go	
  
aUer	
  reform	
  that	
  puts	
  the	
  kibosh	
  on	
  those	
  who	
  are	
  looking	
  to	
  exploit	
  the	
  system	
  solely	
  for	
  financial	
  gain.	
  IE:	
  Go	
  
aUer	
  the	
  overly	
  li=gious	
  patent	
  trolls	
  with	
  low-­‐quality	
  patents.	
  Holbrook	
  agrees,	
  
“Problems	
  arise	
  when	
  PAEs	
  sue	
  on	
  improperly	
  issued	
  patents,	
  ones	
  that	
  never	
  should	
  have	
  goHen	
  out	
  of	
  the	
  US	
  
Patent	
  and	
  Trademark	
  Office.”	
  
Unfortunately,	
   it	
   seems	
   -­‐such	
   as	
   in	
   the	
   case	
   of	
   PAEs	
   like	
   Chicago’s	
   own,	
   Anthony	
   Brown-­‐	
   that	
   most	
   rely	
   on	
   low-­‐
quality	
  patents	
  that	
  shouldn’t	
  be	
  li=gated	
  as	
  the	
  center	
  of	
  their	
  business.	
  
So	
  where	
  do	
  you	
  draw	
  the	
  line	
  with	
  the	
  Innova=on	
  Act?	
  Do	
  nothing,	
  do	
  everything	
  or	
  work	
  harder	
  to	
  find	
  a	
  
compromise…	
  ?	
  Well,	
  it’s	
  Congress,	
  so	
  we	
  can	
  only	
  venture	
  an	
  educated	
  guess	
  as	
  to	
  what	
  the	
  answer	
  will	
  be.	
  

!
-­‐Kate	
  Kotler,	
  
Writer

Mobile Marketing Agency

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IT’S A TRILOGY! (More on Patent Trolls…)

  • 1. IT’S A TRILOGY! (More on Patent Trolls…) -Kate Kotler, Writer March 5, 2014
  • 2. While   following   up   on   our   ongoing   coverage   of   the   proposed   patent   troll   reform   legisla=on   snaking   through   Congress,   we   stumbled   across   the   following   ar=cle   on   CNN.com:   Opinion:  Not  all  patent  trolls  are  demons  by  Timothy  Holbrook   Duh,   some   of   them   are   homunculi!   (Patently   -­‐pun   intended-­‐   stolen   from  fusillade762  on  Fark.com)   The  crux  of  the  opinion  piece  is  that  while  the  media  is  busy  “demonizing”  Patent   Asser=on   En==es   (or,   PAEs,   the   polite   way   of   saying   “patent   troll”)   that   many   of   these  companies  actually  serve  a  valuable  business  purpose  and  are  one  of  the  only   solid   channels   bootstrapped   inventors   have   of   seeing   monetary   return   for   their   crea=ons:   Rules  of  a  Trilogy  (Scream  3) “What   is   lost   in   this   mudslinging   is   that   much   of   what   PAEs   do   is   laudable   —   paying   inventors.   Patents   don’t   grow   on   trees.   Someone   came   up   with   the   inven@on   and  incurred  considerable  expense  to  obtain  the  patent.  Many  inventors  can’t  bring   their  inven@on  to  market  themselves,  however,  so  selling  the  patent  may  be  the  only   way  for  them  to  make  money.  By  buying  these  patents,  PAEs  compensate  inventors,   one  of  patent  law’s  objec@ves.” Mobile Marketing Agency
  • 3. While   this   is   an   interes=ng   flip   side   of   the   patent   troll   coin   to   consider,   it   seems   to   us   that   altruis=c   PAEs   comprise  a  small  minority  of  the  larger  patent  acquisi=on  community  and  while  Congress  should  consider  the   legi=mate  business  purposes  of  this  segment  (and,  make  sure  their  ac=vi=es  are  protected),  they  s=ll  should  go   aUer  reform  that  puts  the  kibosh  on  those  who  are  looking  to  exploit  the  system  solely  for  financial  gain.  IE:  Go   aUer  the  overly  li=gious  patent  trolls  with  low-­‐quality  patents.  Holbrook  agrees,   “Problems  arise  when  PAEs  sue  on  improperly  issued  patents,  ones  that  never  should  have  goHen  out  of  the  US   Patent  and  Trademark  Office.”   Unfortunately,   it   seems   -­‐such   as   in   the   case   of   PAEs   like   Chicago’s   own,   Anthony   Brown-­‐   that   most   rely   on   low-­‐ quality  patents  that  shouldn’t  be  li=gated  as  the  center  of  their  business.   So  where  do  you  draw  the  line  with  the  Innova=on  Act?  Do  nothing,  do  everything  or  work  harder  to  find  a   compromise…  ?  Well,  it’s  Congress,  so  we  can  only  venture  an  educated  guess  as  to  what  the  answer  will  be.   ! -­‐Kate  Kotler,   Writer Mobile Marketing Agency