DHANYA N.

MENON
ATTORNEY
PRINCIPLE OF PATENT LAW

A Patent Not Only Prevents The
Imitation Of The Patentees Technology
But Also Limits The Ability Of Inventors
To Develop And Market Their Own
Technologies.

DEFINITION

A patent troll is somebody who tries to
make a lot of money off a patent that
they are not practicing and have no
intention of practicing and in most
cases never practiced.

WHO/WHAT?
A person or entity

Acquires ownership of a patent

Without the intention of actually using
it to produce a product

nonproducing entity, nonpracticing
entity, Patent Shark

Buyers as well as sellers


THEY DO?
Procure patents
Licenses the technology
Identifies the ingringers-Sues an entity
Only enforce patents against the alleged
infringers
Interested in exclusion right; not in the
underlying knowledge.
Only concern is of the damages or
settlement payment
THEY DONT DO?
Manufacture products
Commercialize the process
Transfer the technology
* * *
Though the inventions are not copied,
but developed independently, patent
suits can be brought


WHO ARE NOT?
University holding patents: Though
non practicing entities

Individual Inventors who licenses his
invention to others for commercialize
THREE STRATEGIES
Injunction based strategy: Under legal
threat of an injunction - seeks a
favorable settlement
Damages based strategy: damages
awarded by the court for infringement
Switching-cost based strategy: exploits
the high cost for switching to a non-
infringing technology
WHO HELPS?
Inefficiency in the patent system

- Excessive damages

- Patentee friendly injunction

- Generous granting of patents

- Disclosure not practice that grant
monopoly
TROLL PATENT ?
Is owned by someone that does not
practice the invention

Is infringed by, and asserted against, non-
copiers exclusively

Has no licensees practicing the particular
patented invention except for
defendants)

Is asserted against a large industry

TROLLS AND INJUNCTION
General rule: courts will issue permanent
injunctions against patent infringement
absent exceptional circumstances
eBay Inc. v. MercExchange, L.L.C., US
Supreme Court rejected this general rule.
Reason: An industry has developed in
which firms use patents not as a basis for
producing and selling goods but, instead,
primarily for obtaining licensing fees.

TROLLS & DAMAGES
Patent Troll v. Apple

NTP- Patent wireless
e mail technology files suit
unfairly using their technology in
2006 similar suit Research in Motion
paid $612 million to NTP does not
produce or offer any wireless e mail
software services.
Thank You