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.

3 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.

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