Patents safeguard innovations, ensuring inventors and businesses receive due compensation for their intellectual property (IP). However, some patent holders, known as “patent trolls,” use their patent rights solely for financial gain without making any substantive societal contributions. Please continue reading and don’t hesitate to contact an experienced Orange County, California Patent Lawyer to understand the impact of these entities on your company and strategies to protect yourself.
What Are Patent Trolls?
Patent trolls, formally known as non-practicing entities (NPEs) or patent assertion entities (PAEs), are companies or individuals that acquire patents with the primary intention of enforcing them against accused infringers. Essentially, their goal is not to produce or sell the patented products themselves but rather to leverage the cost litigation to force settlements or enter into non-favorable licensing agreements, regardless of the validity of the claim.
While patent trolls target a wide range of businesses, they often focus on smaller companies and startups due to their limited financial capacity to engage in protracted legal battles. This creates a challenging environment for innovation-driven companies. These entities exploit systematic vulnerabilities and employ intimidating strategies to secure settlements, leveraging the fact that most businesses prefer to pay rather than face expensive litigation.
How Can I Protect Myself?
Fortunately, there are several ways you can protect yourself and your business from patent trolls. First, it’s advisable to consult with a qualified IP attorney who can evaluate potential risks, analyze demand letters, and determine the best course of action given the unique circumstances of your situation.
To reduce your risk, you should ensure your inventions are properly protected through the patent approval process. Before you launch a new product or service, you should conduct thorough research to ensure you don’t run into potential patent conflicts. If you discover that a patent exists that could affect your business, consider modifying your designs to avoid infringement. This will deter patent trolls from targeting your company, as they usually prey on businesses with weak IP defense strategies.
It’s highly recommended to consider purchasing patent infringement insurance. This will help cover legal expenses associated with defending against patent infringement claims. If you receive a demand letter, remain calm and reach out to an attorney before taking any action or responding. Ignoring the letter can have serious consequences, and settling without legal advice can establish a costly precedent and cause devastating financial harm.
As you can see, patent trolls stifle innovation by imposing significant costs and legal burdens on operating businesses. To protect yourself, it’s in your best interest to consult with a determined attorney from Burns Patent Law, who ca asses your risk factors and develop strategies to safeguard your inventions. Connect with our firm today for more information.
