The Brothers Grimm Book of Business Models: A Survey of Literature and Developments in Patent Acquisition and Litigation

Abstract:     
Although they have received the lion’s share of the limelight in recent years, it is not just “trolls” shaping the patent landscape today; “giants” and “dwarves” are in the thicket as well. The "trolls" are the patent holders that do not practice their patents, but instead seek to profit from litigation them; the "giants" are the large, multinational firms with both extensive patent portfolios and products practicing them; the "dwarves" are firms with a large presence in one market but are entering another market for which they have few or no relevant patents. This article provides a survey of key patent-related events taking place in 2011 and takes stock of the current patent acquisition and litigation landscape. Specifically, this article reviews the empirical literature on patent assertion entities, assesses the patent auctions that were held throughout 2011 and over which the giants and dwarves battled fiercely, and surveys the numerous patent infringement lawsuits currently underway, cases which include troll, giant, and dwarf plaintiffs.

Number of Pages in PDF File: 29

Keywords: patent, litigation, litigation cost, non-practicing entities, software patents, patent auctions, patent infringement

JEL Classification: O31, O34, K41, D44

working papers series