NO regulation on Patent Trolls
A patent troll is a person or a company which uses its patent to sue other people or companies for money. Normally, the patent trolls which also known as NPEs (non-practicing entities) or PAEs (patent assertion entities) do not produce offer products or services with their patents. They just retain their patents. Recently, Hyundai, which is the South Korea’s vehicle company, has been struggled with a Paice, which is the U.S.’s company. The Paice is a notorious NPE which has hybrid car patents and accuses other global car companies. Toyota got an order to pay loyalty to the Paice after the 6 years’ lawsuit; moreover, Hyundai is still doing their lawsuit. Like this example, the patent trolls use their powers which …show more content…
Some might argue that patent trolls have good impact on small individuals or startup companies. According to Chien (2014), “PAEs provide ways for patentees to monetize their patents, often when there is not an alternative.” In his article, he mentions about PAEs’ benefits to startup companies such as monetization opportunities, purchasing opportunities in the Patent marketplace. While that is true, patent trolls are the major obstacles to individual inventors’ innovations or startup companies’ developments because they get a lawsuit which demands huge amounts of compensation money or a pressure which suggests selling their inventions. According to Kahin (2015), “There was TM Soft who estimated their troll case costing $190,000 in legal work before even setting foot in the courtroom.” Patent trolls’ offensive actions give serious financial damages to small companies. Worst case a company which has to pay a lot of money to patent trolls deal with bankrupt or give up their patent. For the startup companies and individual inventors that much of money are like death penalties for their businesses or inventions. These are why they decide to give up their patent at the end of the lawsuits because they cannot afford the lawsuits’ costs. Therefore, the PAEs’ brutality behaviors should be restricted by law to encourage individual inventors or startup …show more content…
It might be said that patent trolls can have positive impacts on world economies. The patent trolls can spend their money to help economic situations or support individual inventors. It could be possible in perfect world. On the other hand, NPEs’ aims to make more money for them. They do not care about the global economic circumstances. “Act to significantly retard innovation in the United States and result in economic “dead weight loss” in the form of reduced innovation, income, and jobs for the American economy.” (Presiden 's council of Economic advisers, National Economic council, & Office of Science&Technology policy, 2013, p. 12). Nowadays, it becomes more serious problem because the patent trolls’ spheres of activity are not limited in one country. With growing of global markets, they can claim to any companies or individuals in any countries. Especially, the PAEs’ actions might make big damages to undeveloped or developing country’s economy because these actions can shake the companies which have big influences on these countries or interrupt individual inventors or companies. Usually, undeveloped or developing countries do not provide proper protections for patents. Even though, they need to support great inventions for their economic growing. The patent trolls abuse these weak points. They buy many patents and demand big amount of money to companies or person who does not have enough
A patent troll is a person or a company which uses its patent to sue other people or companies for money. Normally, the patent trolls which also known as NPEs (non-practicing entities) or PAEs (patent assertion entities) do not produce offer products or services with their patents. They just retain their patents. Recently, Hyundai, which is the South Korea’s vehicle company, has been struggled with a Paice, which is the U.S.’s company. The Paice is a notorious NPE which has hybrid car patents and accuses other global car companies. Toyota got an order to pay loyalty to the Paice after the 6 years’ lawsuit; moreover, Hyundai is still doing their lawsuit. Like this example, the patent trolls use their powers which …show more content…
Some might argue that patent trolls have good impact on small individuals or startup companies. According to Chien (2014), “PAEs provide ways for patentees to monetize their patents, often when there is not an alternative.” In his article, he mentions about PAEs’ benefits to startup companies such as monetization opportunities, purchasing opportunities in the Patent marketplace. While that is true, patent trolls are the major obstacles to individual inventors’ innovations or startup companies’ developments because they get a lawsuit which demands huge amounts of compensation money or a pressure which suggests selling their inventions. According to Kahin (2015), “There was TM Soft who estimated their troll case costing $190,000 in legal work before even setting foot in the courtroom.” Patent trolls’ offensive actions give serious financial damages to small companies. Worst case a company which has to pay a lot of money to patent trolls deal with bankrupt or give up their patent. For the startup companies and individual inventors that much of money are like death penalties for their businesses or inventions. These are why they decide to give up their patent at the end of the lawsuits because they cannot afford the lawsuits’ costs. Therefore, the PAEs’ brutality behaviors should be restricted by law to encourage individual inventors or startup …show more content…
It might be said that patent trolls can have positive impacts on world economies. The patent trolls can spend their money to help economic situations or support individual inventors. It could be possible in perfect world. On the other hand, NPEs’ aims to make more money for them. They do not care about the global economic circumstances. “Act to significantly retard innovation in the United States and result in economic “dead weight loss” in the form of reduced innovation, income, and jobs for the American economy.” (Presiden 's council of Economic advisers, National Economic council, & Office of Science&Technology policy, 2013, p. 12). Nowadays, it becomes more serious problem because the patent trolls’ spheres of activity are not limited in one country. With growing of global markets, they can claim to any companies or individuals in any countries. Especially, the PAEs’ actions might make big damages to undeveloped or developing country’s economy because these actions can shake the companies which have big influences on these countries or interrupt individual inventors or companies. Usually, undeveloped or developing countries do not provide proper protections for patents. Even though, they need to support great inventions for their economic growing. The patent trolls abuse these weak points. They buy many patents and demand big amount of money to companies or person who does not have enough