What is a patent troll?

A patent troll is a term used to refer to companies or individuals who acquire patents not with the intention of using them to innovate or create products, but rather to aggressively litigate against other companies for financial gain. These entities often purchase patents from bankrupt companies or individual inventors in order to target businesses that unintentionally infringe on their patents.

Impact on innovation and the economy

Patent trolls have been criticized for stifling innovation by diverting resources away from research and development towards costly legal battles. This not only hinders technological progress but also places a significant burden on businesses, particularly small startups, that may not have the resources to defend themselves in court.

In addition, the prevalence of patent trolls has led to an increase in patent litigation, clogging up the legal system and creating uncertainty for businesses. This can deter investment in new technologies and ultimately have a negative impact on the economy.

Addressing patent abuse

To combat patent trolls, there have been calls for reforming the patent system to make it more difficult for entities to engage in abusive litigation practices. This includes measures such as increasing transparency in patent ownership, cracking down on frivolous lawsuits, and promoting alternative dispute resolution mechanisms.

Furthermore, businesses can protect themselves from patent trolls by conducting thorough patent searches, building a strong intellectual property portfolio, and seeking legal advice to navigate the complexities of patent law.