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Thursday, 06 September 2012 09:29

US Government researcher worried about patent trolls

Written by Nick Farrell

white house

Sign that Congress might actually wake up

The Congressional Research Service (CRS) which is the research division of Congress known for its objective studies, has issued a report on the effects of patent trolls on innovation and the economy.

The study shows that the US patent system is completely stuffed and there is far too much trollage for the nation's good. It points out that patent trolls are litigious entities that don't usually create new products or come up with new ideas.

Armed with often overbroad and vague patents, the trolls send out threatening letters to those they argue are infringing, it says. According to the CRS report defendants settle because patent litigation is risky, disruptive, and expensive, regardless of the merits.

Many trolls set royalty demands strategically well below litigation costs to make the business decision to settle an obvious one. “Businesses lose both time and money, and innovation suffers,” the report said.

Publication of the CRS report could be important because it indicates that Congress might be taking a stand against the trolls.

More here.


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