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Un-litigated or un-licensed patents still have value, even to smaller companies. One huge use for patents is a like a nuclear arsenal between competitors. Comp
by rhino369 12y ago
Un-litigated or un-licensed patents still have value, even to smaller companies.
One huge use for patents is a like a nuclear arsenal between competitors. Competitor A has 500 patents, competitor B has 500 patent, both covering the product range they both make. Neither is going to sue based on it because it would be a huge mess. The Smartphone wars is something of a rarity. Usually industry leaders don't go at each other.
Google found this out because of their late development of patents related to Android. Not having the arsenal made Google weak. It's why Google acquired Motorola. Google paid billions for patents that never got used.
IP portfolios also are an asset you can borrow against.
Commercial litigation is always expensive. Doesn't matter if it is breach of contract or patent infringement. The little guy is at a disadvantage.
- mpdehaan2 12y agoTrue -- unfortunately this doesn't work against a patent holding company with no actual assets. It's likely they hold thousands of patents but have nothing to return fire against. Thus, a very GOOD public company can be attacked by someone who has simply bought IP, and does not have recourse against them.
- rhino369 12y agoIn my mind, the issue isn't the ability to buy IP and sue, but the fact that there is shitty IP out there that can be bought and misused. The best IP a non-practicing entity gets is from legit companies who sold off their IP or lost it in bankruptcy. When that happens, it's just monetizing the R&D the company invested in. The big issue is dogcrap patents that granted to garage inventors with way too big a scope or after there was already a ton of prior art. The trolls take those patents and then extort the shit out of everyone they can.