FTC Announces Study Of Patent Assertion Entities

On Sept. 27, 2013, the Federal Trade Commission announced that it will conduct a study concerning Patent Assertion Entities (PAEs) and other entities asserting patents in the wireless communication sector, including manufacturers and other non-practicing entities (NPEs) engaged in licensing. For purposes of the study, the FTC defines PAEs "are firms with a business model based primarily on purchasing patents and then attempting to generate revenue by asserting the intellectual property against persons who are already practicing the patented technology." The notice distinguishes these entities from "NPEs that primarily seek to develop and transfer technology, such as universities, research entities and design firms."