Posts Tagged: "operating companies"

The PTAB has failed to solve the patent troll problem created by large operating companies

The patent troll problem has always been a creation of large operating companies. They obtained dubious, highly questionable patents. These low quality patents were then sold to other entities so they could specifically and intentionally be used to sue other large operating companies… Post grant challenges were created in the AIA for the express purpose of getting rid of these low quality patents. The large operating companies that so desperately lobbied for new procedures to challenge these low quality patents instead continue to pay extortion-like settlements to patent trolls who apparently continue to sue alleging infringement of low quality patents.

Gene Quinn

February 22, 2017

Why NPEs Lose Less Often in Court Than Operating Companies

I propose that if any comparison is made at all, we should look at patentee loss statistics. Patentee loss statistics are much more likely to allow a comparison between monetizing companies and operating companies, and the cases they bring. Why is this? Two reasons. First, imminent patentee merits victories will get vacuumed into the settlement category… And second, trial and patentee-initiated summary judgment proceedings are a tiny statistical blip. It turns out that in terms of quantity, there are about ten times more defense merits wins than patentee merits wins among all cases that get litigated and do not settle. The explanation for this is simple – a patentee does not have to “win” to succeed – it only has to settle on monetary terms that it can convince an opponent to give.

Robert P. Greenspoon

February 25, 2014