Cost of Patent Trolls

In Study: patent trolls have cost innovators half a trillion dollars Ars Technica reports on findings of three Boston University professors who studied the economics of patent-infringement lawsuits filed by “non-practicing entities”–business entities that exist only to own patent portfolios and sue for infringement.  The cost for publicly-traded companies since 1990 is $500 trillion and lately has run at about $83 billion a year. The researchers used stock market event study analysis to calculate the cost.  Read the article to learn more.

4 thoughts on “Cost of Patent Trolls”

  1. It would be interesting to see if someone could prove an intentional tort based on the notion that these “non-practicing entities” are setting up their companies with the intent to sue others in order to gain capital. One could argue their business plan is built on a platform of malice against unknown “clients”.

    1. It is not a tort because these companies are enforcing rights granted by patent law. There’s nothing legally “wrongful,”, which why many believe patent law should be changed.

  2. Asking questions are actually nice thing if you are not understanding something fully, however this piece of writing provides pleasant understanding even.

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