Patents were introduced in the world of innovation to encourage originality and creativity but unscrupulous individuals are taking advantage of the patents to milk money and life out of new innovations. These patent trolls, are the new headache in the world of technology and innovation and if they are not dealt with sooner, they will stifle the life out of up and coming companies.
What exactly are patent trolls though? How do these patent trolls operate? As an innovator, how do you ensure that you are safe from these malodorous patent trolls? If you find yourself entangled in a lawsuit with patent trolls, what should you do?
To have a better understanding of the matter, we talked one of the most seasoned patent attorneys in the country. Tony Guo, the CEO of Patent Panda, has amassed vast experience in the patents field and is best placed to address the issue. Here is what Tony had to say on patent trolls;
A patent troll, is an individual or an organization that patents numerous ideas or purchases numerous patents and asserts them against any company or individual that actively tries to engage with a similar or competing product in the same domain.
Actually, a lot of these trolls, don’t actually come up with any useful or meaningful product and only wait until another company ventures into their patented domain area and they spring to life. They will file a lawsuit against such companies and will end up reaping large from the lawsuit.
These patent trolls add no meaningful value to any society. They don’t take time to conduct researches, they don’t commit finances to develop any meaningful product or hire a team of employees. They just lay their heads low while looking out for possible targets and wait until their targets have made irreversible progress in their companies and they spring to life with their lawsuits.
Patent trolls take advantage of non-practicing status
There is a reason why these patent trolls are not engaged in any active product. They are almost always in non-practicing status and this works to their advantage whenever they file a lawsuit. By remaining in their docile non-practicing status, these trolls are immune to counterclaims of patent infringement and they also lower their costs in litigating discovery.
Millions of dollars have been lost to these trolls over the years
The social and economic impacts of these patent trolls are staggering. Billions of dollars have been lost by genuine innovation companies and millions of potential jobs have gone down the drains, thanks to these selfish individuals.
According to a recent study, there has been a 600% surge in the number of the patent cases filed by these trolls in the last ten years in America alone. Although a small number of the claims are genuine, a good number of them are filed by patent trolls who serve no productive purpose.
It is estimated that the US economy loses close to $30 billion a year. This includes litigation costs and the management distractions which directly hinder development and innovation of products. People shy away from the fields and domains which are synonymous with patents and this has a direct impact on the state of the economy.
So, as an innovator or upcoming coming company, what should you do in case you are entangled in a lawsuit with potential patent trolls? Here is a quick look on what you should do in case you are a patent troll target;
What you should do in case you are entangled in a lawsuit against a patent troll
In case of a lawsuit against you by potential patent trolls, don’t panic or make any irrational decisions such as closing down shop or rushing to discontinue your business. Instead, take time out and conduct thorough research to find out more information about the people behind the lawsuits. Use the available online resources to find as much information as possible about the potential trolls.
If your company has the resources, proceed to hire a competent attorney with knowledge and experience in the patents industry. To increase your chances of emerging victorious in such a suit, you’ll need to hire someone with a proven past record. A good attorney will thoroughly advise you on the course to take and help save your company.
If you are a technology company facing a lawsuit or are looking for advice on how to stay safe from the new breed of bloodthirsty patent trolls, look no further than Patent Panda’s way for the best advice and legal counsel on patents.
We have a competent team of seasoned attorneys and have an unmatched understanding of the patents field and will help you to stay safe from the patent trolls. Give us a call today or book an appointment with our attorneys today for the best advice and consultation on patents and how to stay safe from patent trolls.
If you are a startup or a small company in Texas looking for more information on patents and want the best legal counsel on the same, look no further than our way. Here at Patent panda, we have a team of passionate legal experts and they will help you understand the patenting process and why it is important for your business. Give us a call today and we will gladly be of help.