The Problem
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"A patent troll, also called a patent assertion entity (PAE), is a person or company who enforces patent rights against accused infringers in an attempt to collect licensing fees, but does not manufacture products or supply services based upon the patents in question, thus engaging in economic rent-seeking." ~ Wikipedia.org
The purpose of patents is to protect intellectual property. But patent trolls just hoard them to sue other companies or people to make money out of it.
The problem I see is, that nowadays not only some independent patent assertion entities pool patents, but also big companies who want to be forearmed against potential lawsuits. This is particularly true for tech companies. A good example for this are patent battles between Apple and Samsung. In the latest patent spat between the two tech giants, Apple is looking to get the final number modified to a value closer to the $2.191 billion it originally requested.
As you can see, a gigantic amount of energy (and eventually money) flows into these issues!
Now, imagine you are a small startup in the tech/software industry.
+ You probably don't need much capital to build a prototype.
- It's really easy for other (bigger) companies to imitate your product.
You can't even be sure whether there is some patent troll, stuffed with money and good lawyers, that holds patents that (ever so slightly) conflict with your product.
It follows that you basically have two choices:
The purpose of patents is to protect intellectual property. But patent trolls just hoard them to sue other companies or people to make money out of it.
The problem I see is, that nowadays not only some independent patent assertion entities pool patents, but also big companies who want to be forearmed against potential lawsuits. This is particularly true for tech companies. A good example for this are patent battles between Apple and Samsung. In the latest patent spat between the two tech giants, Apple is looking to get the final number modified to a value closer to the $2.191 billion it originally requested.
As you can see, a gigantic amount of energy (and eventually money) flows into these issues!
Now, imagine you are a small startup in the tech/software industry.
+ You probably don't need much capital to build a prototype.
- It's really easy for other (bigger) companies to imitate your product.
You can't even be sure whether there is some patent troll, stuffed with money and good lawyers, that holds patents that (ever so slightly) conflict with your product.
It follows that you basically have two choices:
- Put a big amount of energy, time and money into protecting against lawsuits.
- Run extremely fast. If you're lucky, some big company may acquire you (instead of imitating your product), because time-to-market is more important to most tech corporations than saving peanuts money. If you're unlucky, you might hit the wall. Only if you are overly successful you have the chance to build an independent, sustainable company.