Patent trolling is a destructive business practice, costing businesses millions of dollars in excessive charges and legal fees. Estimates say businesses lose more than $29 billion in out-of-pocket costs per year to patent trolling while spending over $60 billion in litigation.
If you are worried about patent trolls affecting your business, here’s what you should know.
Nebulous definition
Part of the problem in fighting patent trolling is that there needs to be an official legal definition. The NYU Journal of Intellectual Property and Entertainment Law defines it as “the practice of obtaining patents not as a basis for producing and selling goods, but primarily for obtaining licensing fees.”
Patent trolls haphazardly file overly broad patents that are often invalid or low-quality. They aim not to protect an invention they made but to hope that the broad patent will apply to a real innovation that has yet to file a patent. In this regard, patent trolling is similar to domain squatting.
Fighting patent trolls
Patent trolls target everyone, from small businesses to large multinational corporations. However, patent trolling disproportionately affects small businesses, often seen as soft and easy targets. Here are some ways you can fight these trolls to protect your business:
- Refrain from falling prey to their scare tactics. Patent trolls often send you demand letters with threats, hoping you will pay instead of questioning it.
- Verify who owns the patent. Some trolls do not even own the patent they are threatening you with. They send demand letters, hoping the small business will pay up.
- Look for other defendants you can join up with. Patent trolls often sue multiple businesses. If you can find them, you can mount a joint defense.
Remember that fighting patent trolling requires patience and vigilance. It can be annoying and exhausting, but the fight is worth it.
Know your rights
Patent trolls rely on businesses not bothering to fight their demands. They rely on small businesses wanting to avoid lengthy patent litigation. You can avail yourself of legal counsel advising you on the best action. Your rights as a small business owner are worth fighting for.