Patent
Asser.on
En..es
(aka
Patent
Trolls)
Person
or
en.ty
which:
– enforces
patent
rights
against
alleged
infringers
in
order
to
collect
licensing
fees;
and
– does
not
manufacture
or
supply
products
or
services
based
on
its
patents.
Trolls
by
the
Numbers
• 66%
of
defendants
to
troll
suits
make
$100M
per
year
or
less
• 55%
of
defendants
in
troll
suits
make
$10M
per
year
or
less
• 62%
of
all
patent
li.ga.on
was
ins.gated
by
trolls
[Image
Source:
RPX
Corpora.on
2013]
1. Heightened
Pleading
Requires
disclosure
of
basic
details
(such
as
which
patents
and
claims
are
at
issue,
as
well
as
exactly
what
products
allegedly
infringe
and
how)
when
it
files
a
lawsuit.
2. Fee
Shi2ing
Requiring
the
loser
in
a
patent
case
to
pay
a`orney’s
fees
and
costs.
3. Discovery
Reform
Stays
most
discovery
un.l
the
court
has
interpreted
the
patent
and
limits
it
to
“core
documents”.
4. Transparency
Requires
patent
trolls
to
reveal
the
par.es
that
would
actually
benefit
from
the
li.ga.on
(called
the
“real
party
in
interest”).
5. Staying
Customer
Suits
Requires
courts
to
stay
patent
li.ga.on
against
customers
when
there
is
parallel
li.ga.on
against
the
manufacturer.
[Image
Source:
United
Ar.sts]
Harder
for
the
small
guys?
– For
a
large
company
that
stands
to
gain
from
s.fling
compe..on,
fees
represent
mechanism
to
u.lize
against
new
market
entrants
that
lack
the
patent
porgolios
and
legal
sophis.ca.on
to
defend
themselves.
[Image
Source:
United
Ar.sts]
Hayes
Law
Firm,
P.L.L.C.
Benjamin
Hayes
(713)
320-‐2960
[email protected] Legal
Disclaimer
The
informa.on
provided
in
this
presenta.on
is
general
and
intended
only
as
a
basic
overview
of
corporate
law
and
does
not
cons.tute
legal
advice.