Patent trolling and its backlash – a Nobel laureate perspective
Patent trolls are generally regarded with disdain and lawsuits designed to extract low-value settlements are treated as nuisance litigations that take advantage of the costs of defence – but in reality, things are not so simple
The Federal Trade Commission (FTC) 2016 Patent Assertion Entity Activity Study, which tracks early-stage costs for defending a patent case, defines ‘nuisance settlements’ as those that settle below $300,000. The study concludes that “[n]uisance infringement litigation... can tax judicial resources and divert attention away from productive business behavior”.
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