Well, I think my system would actively incentivize the reduction in the number of patents. Fewer patents would lead to higher licensing fee per patent, so you'd

Well, I think my system would actively incentivize the reduction in the number of patents. Fewer patents would lead to higher licensing fee per patent, so you'd have an incentive to only patent the stuff that really matters (since every patent has a base cost to acquire). Also, I'm not proposing that there be some sort of strict requirement that you must pay the licensing fee for all the patents you use. Obviously cross-licensing agreements and such would still be valid. What I'm trying to cure is the system the patent trolls currently operate under: Patent Troll - "I'm going to sue you for $1 mil for infringing my patent unless you pay my licensing fee." Startup Founder - "How much is your licensing fee?" Patent Troll - "Only $10,000" You have to keep in mind that most patent lawsuits never see judgement. They exist only to coerce alleged infringers into paying licensing fees. The problem is that the licensing fees are arbitrary. They are not reflective of any sort of market, but rather reflective of infringement-penalty * chance-of-judgment-against (well, I guess this is a perverse sort of market: a market of jury pools).