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ARTICLE · 26 SEPTEMBER 2012

Death Knell For Patent Trolls?

"Patent trolls" is the term widely used for entities that acquire patents solely to try to obtain settlements from companies who have invested substantially in product development.

United StatesIntellectual Property

Overview

"Patent trolls" is the term widely used for entities that acquire patents solely to try to obtain settlements from companies who have invested substantially in product development.  They are a serious problem for Asian companies that operate or sell goods in the United States (US). 

Recent patent reform in the US is intended to reduce troll activities, but will these reforms really work to the benefit of Asian companies? This article describes some of the provisions of the America Invents Act (AIA) that should give Asian companies the advantage when facing patent trolls.

Background

The patents that trolls buy are frequently of questionable validity, yet are selected because large numbers of companies with significant sales can be accused of infringement.  Even the equivalent of a small royalty paid by each company to dispose of a troll's suit adds up to a sizeable return on an acquired patent.

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