Spot the Patent Troll: Do Current Incentives Meet the Goals of the Patent System?

Abstract

Much has been written about patent trolls and the detrimental effects they have on the patent system. Legal and legislative attempts have been made to curb patent trolls. However, there is considerable confusion over who is actually a patent troll. Because of the focus on trolls, other practices have been ignored. Judicial and legislative remedies have done little to discourage strategic patent non-practice. This work first examines the goals of the patent system and the difficulties faced by inventors. In light of these goals, patent non-practice and strategic use is examined. The problem presented by patent trolls appears to only be a minor one. There are other serious and pervasive patent practices which are limiting innovation but are being ignored. Changes should be considered in order to have real-world patent practice align with the professed goals of the system.

Keywords: patent troll, patent non-practice, patent practice, non-practicing entities, NPE, cross-licensing, patent monetization entities

JEL Classification: K00, K10, K11, K12, K19, K23