Rent-Seeking and Inter Partes Review: An Analysis of Invalidity Assertion Entities in Patent Law
17 Pages Posted: 18 Nov 2015 Last revised: 12 Mar 2019
Date Written: November 16, 2015
This article is the first analysis of a recent entrant on the patent landscape: the Invalidity Assertion Entity (IAE). IAEs engage in rent-seeking by demanding payment from patent holders in exchange for not attempting to invalidate their patents through administrative action before the U.S. Patent and Trademark Office.
The response to IAEs has been uniformly negative. Reflexive Congressional proposals to terminate the IAE business model were not surprising. In contrast to the common response to IAEs, this article discusses how profit-drive IAEs may effect socially beneficial externalities and why legislating to end the IAE business model is imprudent.
Keywords: rent-seeking, inter partes review, patent law, invalidity
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