Patent Trolls: The Basics
What is a Patent Troll?
"[A] troll hides under bridges,
metaphorically speaking, waiting for companies to produce and market products,
that is, to approach and cross the bridge. The ugly, evil troll then leaps up
and demands a huge toll, that is, a licensing fee settling actual or threatened
patent litigation, litigation that could result in an injunction halting the
production line."
Donald J. Chisum, Reforming Patent Law Reform, 4 J Marshall Rev. Intell. Prop. L. 336, 340 (2005)"
Donald J. Chisum, Reforming Patent Law Reform, 4 J Marshall Rev. Intell. Prop. L. 336, 340 (2005)"
- ‘somebody who tries to make a lot of money off a patent that they are not practicing and have and have no intention of practicing and in most cases never practiced’ – Peter Detkin
- Non-Practising Entities: Companies who own patents but do not themselves, provide or manufacture associated products or services
- Patent Assertion Entity: A body who may or may not produce products and who use patents to generate revenue through license fees and litigation instead of maintaining a market monopoly
The Positives of Patent Trolls:
1. Level the field for small inventors
2. Market efficiency
3. Inhibit patent infringements
1. Level the field for small inventors
2. Market efficiency
3. Inhibit patent infringements
The Jump Rope Case
This is Peter Braxton
Smart Options launched an infringement claim against Jump Rope. Although Jump Rope won on summary judgment, a lack of funds proved problematic to Braxton, particularly when Smart Options came back with threats to appeal the decision. |
Peter Braxton developed a smart phone app to allow patrons to pay a venue to jump to the front of an entry queue. Then enters ipNAV, a ‘patent troll’ who after learning of Jump Rope’s predicament took over the litigation and invested money into the company.
Braxton was able to continue to operate his business. |
As patent trolls have been less problematic in Australia thus far, it is useful to examine patent trolling litigation in the US to consider the issue in detail.