3 ms·

Eh this approach still exists at FANG companies, it seems like we stockpile patents to ensure that if we get sued by another FANG-level company it's mutually as

• rhino369 5y ago
  It can also be lucrative if business wanes. Companies with near monopoly power already printing money regardless so they don't bother. But a lot of once-great companies turn to monetizing patents. Some of the most successful patent trolls buy portfolios from companies that were actually engaged in the field at the time.
• webmaven 5y ago
  > Eh this approach still exists at FANG companies, it seems like we stockpile patents to ensure that if we get sued by another FANG-level company it's mutually assured destruction. > The legal department at a startup I used to work at was pretty open about it. They also can be (and have been) used as a cudgel against smaller companies to force them to make a deal or even sell out to the patent holder: > The blue suits did not even confer among themselves. They just sat there, stonelike. Finally, the chief suit responded. "OK," he said, "maybe you don't infringe these seven patents. But we have 10,000 U.S. patents. Do you really want us to go back to Armonk [IBM headquarters in New York] and find seven patents you do infringe? Or do you want to make this easy and just pay us $20 million?" https://www.forbes.com/asap/2002/0624/044_print.html https://www.forbes.com/asap/2002/0624/044_print.html