Wednesday, September 21, 2011
PATENT TROLLS COST COMPANIES $500 BILLION AND STIFLE INNOVATION
According to The Private and Social Costs of Patent Trolls, a new study published by the Boston University School of Law, patent trolls are responsible for $500 billion of “lost wealth” between 1990 and 2010, and for a decline in innovation. The study defines patents trolls as “firms that license patents without producing goods,” otherwise known as non-practicing entities. The researchers have found patent trolls, typically smaller firms, often sue large companies for technology patent infringement to make a quick buck. The lawsuits have resulted in an average of $80 billion of lost wealth per year during the last four years.
The Private and Social Costs of Patent Trolls argues that patent trolls push firms to purchase “vague, over-reaching patents” instead of innovating.