2015: Rise of the Patent Troll

January 20, 2016

Patent Troll Litigation on the Rise Despite Efforts to Curb It

Non-patent entities, commonly referred to as NPEs, are known for buying patents and then suing others for infringement. NPEs don't make or sell anything. Instead, they turn a profit by winning settlements and judgments. It's methods such as these that have led people to refer to NPEs as "patent trolls." 

Companies and government entities are well aware of the tactics employed by patent trolls. They are seen as such a problem that legislation has been passed that aims to curb their activity. Despite these efforts, a recent report by RPX Corp. demonstrates that NPEs filed more patent litigation lawsuits in 2015 than they did in 2014. A total of 3,604 lawsuits represents a steep rise over the 2,891 similar complaints that were launched in the previous year. This increase comes despite efforts by the American government to curb such activity.

Efforts to Curb Patent Trolls

The 2011 America Invents Act ostensibly provides the government with the power it needs to persuade NPEs away from suing others for infringement. In particular, the Act is meant to minimize the number of infringement lawsuits that are aimed at computer software. The Patent Trial and Appeal Board was instituted as part of the act. It allows participants to circumvent responding to allegations of infringement by focusing on whether or not a patent should have been granted in the first place. Many critics of the U.S. patent system have contended that a majority of infringement lawsuits are moot because the patent was never valid in the first place.

The Patent Trial and Appeal Board is already making progress. More than 4,000 patent challenges have been filed with the board since its inception. Many of these never turn into full-fledged lawsuits thanks to the ability to challenge the validity of the patent at issue.

The U.S. Supreme Court and other courts are also joining in the effort by striking down patents that are invalid. This maneuver is helpful when it comes to preventing NPEs from trying to profit through infringement claims. Nonetheless, the battle is clearly ongoing since the number of NPE lawsuits continues to rise.


Patent Troll Case Study

Still, cases like Alice Corp. v. CLS Bank International show that the U.S. Supreme Court is doing its part to lessen the number of patent troll lawsuits. The court effectively invalidated the patents that were being asserted by the Alice Corp. against CLS Bank. This put an end to yet another specious lawsuit brought by an NPE.

NPE lawsuits waste a great deal of time and resources. Whether the complaints are lodged against companies large or small, it's necessary for executives to prioritize their response, and that often means having to shift focus from the organization's reason for existence. It's a troubling trend that needs to be met with sturdy resistance.

Patent Troll Resolution

If you or your company are being accused of patent infringement, then it is important to enlist the help of a skilled Texas intellectual property attorney. The Law Office of Jeff Williams has the necessary experience and knowledge that can help you protect your rights. Don't let an NPE lawsuit distract you from your business or erode your company's profitability. It may very well be that the patent you are accused of infringing is invalid. Let the Law Offices of Jeff Williams provide you with the guidance and insight you need.
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