Patent Trolls: Evidence from Targeted Firms

Cohen, Lauren; Gurun, Umit G.; Kominers, Scott Duke

doi:10.3386/w20322

Cited by 70 publications

(50 citation statements)

References 25 publications

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“…Cohen et al . () present interesting evidence that may help to shed light on PAEs’ controversial role. The authors carried out a large‐sample study based on the complete universe of PAEs litigation activity in the United States between 2005 and 2015.…”

Section: The Market For Ict Patentsmentioning

confidence: 87%

“…PAEs represent one of the most controversial phenomena in the market for ideas. PAEs are generally referred to as entities that acquire patents from third parties and exploit them in order to maximize earnings from licensing and litigation (see Schwartz and Kesan, ; Cohen et al ., ). Typically, PAEs do not rely on manufacturing or selling products.…”

Section: The Market For Ict Patentsmentioning

confidence: 97%

See 1 more Smart Citation

The Role of Patents in Information and Communication Technologies: A Survey of the Literature

Comino

Manenti

Thumm

2018

Journal of Economic Surveys

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During the last few decades, the number of patents in information and communication technologies has increased considerably. An increasing number of patents and the associated fragmentation of IP rights have generated a series of potentially problematic consequences. Patent thickets, royalty stacking, the emergence of patent assertion entities, increased patent litigationparticularly around standard essential patents -and the difficulties with defining fair, reasonable, and nondiscriminatory licensing terms are some of the most debated issues in the literature that we review in this paper. We devote a specific section of our survey to patent quality, currently one of the most debated issues surrounding the patent system. In our analysis, we mix theoretical and empirical arguments with a more policy-oriented reasoning. This allows us to better position the different issues in the relevant political and economic context.

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Section: The Market For Ict Patentsmentioning

confidence: 87%

Section: The Market For Ict Patentsmentioning

confidence: 97%

The Role of Patents in Information and Communication Technologies: A Survey of the Literature

Comino

Manenti

Thumm

2018

Journal of Economic Surveys

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“…Almost 60 percent of IT companies received demands around their IPOs. Similarly, Cohen, Gurun, and Kominers (2015) found that a company was 50 percent more likely to be sued following a large positive cash shock, and that a cash shock was a significant predictor of the number of times a company was sued by NPEs. The authors found further that no other form of litigation has the same type of cash targeting behavior-not torts, contracts, securities, environmental, or labor law.…”

Section: Innovation-related Justifications For Npesmentioning

confidence: 92%

Patent Licensing, Technology Transfer, and Innovation

Lemley¹,

Feldman

2016

American Economic Review

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Traditional justifications for patents are based on direct or indirect contribution to product creation. Non-practicing entities (NPEs) might provide such innovation, either directly, through working the patent or transfer of technology to others who do, or indirectly, when others copy. Available evidence suggests, however, that ex post licensing demands from NPEs do not normally involve these activities. Some have argued that patents are valuable without01/technology transfer because the ability to exclude may drive commercialization that would not otherwise occur. We demonstrate that even if commercialization theories sometimes justify patent protection, they cannot justify most NPE lawsuits or licensing demands.

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“…94 Similarly, Cohen, Gurun and Kominers found that companies are more likely to be sued by an NPE following a large, positive, cash shock, such as a funding event or an IPO, and that a cash shock was a significant predictor of the number of times a company was sued by NPEs. 95 Cohen, Gurun and Kominers also found that no other form of litigation has the same type of cash targeting behavior-not torts, contracts, securities, environmental, or labor law. 96 Nothing but patent law.…”

Section: Is Ownership a Good In And Of Itself?mentioning

confidence: 99%

Is Patent Enforcement Efficient

Lemley

Feldman

2018

Preprint

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Traditional justifications for patents are all based on direct or indirect contribution to the creation of new products. Patents serve the social interest if they provide not just invention, but innovation the world would not otherwise have. Non-practicing entities (“NPEs”) as well as product-producing companies can sometimes provide such innovation, either directly, through working the patent or transferring technology to others who do, or indirectly, when others copy the patented innovation. The available evidence suggests, however, that patent licensing demands and lawsuits from NPEs are normally not cases that involve any of these activities. Some scholars have argued that patents can be valuable even without technology transfer because the ability to exclude others from the market may drive commercialization that would not otherwise occur. We demonstrate that even if various commercialization theories can sometimes justify patent protection, they cannot justify most NPE lawsuits or licensing demands.

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Patent Trolls: Evidence from Targeted Firms

Cited by 70 publications

References 25 publications

The Role of Patents in Information and Communication Technologies: A Survey of the Literature

The Role of Patents in Information and Communication Technologies: A Survey of the Literature

Patent Licensing, Technology Transfer, and Innovation

Is Patent Enforcement Efficient

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