Keeping trolls in their holes.
Author | Griffin, Jonathan |
Position | TRENDS - Brief article |
More than half the states have joined the battle against the most litigious of patent-assertion entities, those known as patent trolls. Vermont led the charge in 2013 by passing the first legislation addressing the menace. Seventeen states followed in 2014, and eight have so far this year, with another one waiting only for the governor's signature.
Trolls are rarely the inventors or original owners of patents. Scavengers by nature, they buy up patents from defunct or struggling companies, then send vague, threatening letters to all kinds of businesses accusing them of violating these patents. The letters often require the unreasonably quick payment of a settlement or license fee that is disproportionately high based on the value of the patent.
Patent trolls are a threat to businesses of all sizes, but young, startup companies are the most vulnerable because the possibility of litigation costs can scare off potential investors.
Although patent issues are typically handled by the federal government, states have made the biggest impact on...
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