Understanding Patent Trolls: Impact and Defense Strategies

What is a Patent Troll?

A patent troll is a term used to describe an entity or individual who acquires patents with the primary goal of using them to generate revenue by suing or threatening to sue other companies or individuals for patent infringement. Unlike traditional inventors or businesses that develop and use their own patents to manufacture and sell products, patent trolls do not typically produce or offer any goods or services themselves.

Patent trolls are also known as "non-practicing entities" (NPEs) because they do not practice the technology or invention covered by the patent. Instead, they typically acquire patents from other companies or inventors and use them as a tool for litigation or licensing agreements.

Patent trolls typically target companies that are in a position to pay a settlement or licensing fee, rather than small businesses or individual inventors who may not have the resources to defend themselves in court. This can lead to a distortion in the patent system and can stifle innovation, as companies may avoid investing in new technology or products out of fear of being sued by a patent troll.

Patent trolls are often criticized for exploiting the legal system and using patents as a weapon to extract money from other businesses. Critics argue that this behavior hinders innovation and ultimately harms consumers by limiting competition and driving up prices.

It is possible for a patent holder to defend against a patent troll.

If you are sued by an entity you suspect of being a patent troll, a law firm with an experienced IP and Litigation department is needed. It is important to treat this threat seriously and contact an attorney immediately!

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