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

See all articles by W. Michael Schuster

W. Michael Schuster

University of Georgia - C. Herman and Mary Virginia Terry College of Business

Date Written: November 16, 2015

Abstract

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

Suggested Citation

Schuster, W. Michael, Rent-Seeking and Inter Partes Review: An Analysis of Invalidity Assertion Entities in Patent Law (November 16, 2015). 22 Michigan Telecommunications and Technology Law Review 271 (2016). Available at SSRN: https://ssrn.com/abstract=2691511

W. Michael Schuster (Contact Author)

University of Georgia - C. Herman and Mary Virginia Terry College of Business ( email )

Brooks Hall
Athens, GA 30602-6254
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
105
Abstract Views
514
rank
262,251
PlumX Metrics