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Zach put a lot of good thinking into the article but ultimately the approach with the shell technology licensing company isn't suitable for many small and mediu
by osipov 13y ago
Zach put a lot of good thinking into the article but ultimately the approach with the shell technology licensing company isn't suitable for many small and medium sized businesses that are stuck with their existing legal structures for a variety of legacy reasons that relate to accounting practices, relationships with business partners and so on. Also, until the approach is proven to work in court there is a significant risk for a company to organize based on the proposed shell technology licensing company structure.
Trolls exploit a number of asymmetries in the system. First, at scale, a patent demand letter is cheap while the cost of the response to the letter is high. Second, cost of patent litigation is several orders higher than cost of patent licensing. Third, the return from winning a patent litigation case is effectively negative for defendants (because trolls are usually shell companies without funds to pay defendant's court expenses) while trolls, on average, receive a positive return from patent litigation cases because they can target a large pool of companies.
To put small and medium sized companies on an even ground with trolls we need to bring together targets of trolls to organize and defend themselves. As a group, companies can balance out the asymmetry in the system. There is some good work in this space from EFF and fightthetroll.com