Patent Quality and Settlement Among Repeat Patent

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Professor Damien Geradin, from the Tilburg Law and Economics Center, says that patent trolls “are said to litigate frequently and for low-quality, “junk” patents, so we might be able to identify these firms through the assessment of patent quality measures” (Geradin 91). Like with the case of E-Data who filed suit against IBM. IBM had hundreds of e-commerce patents to protect their online business ventures. However, E-Data only needed one broadly interpreted patent to sue IBM for hundreds of millions of dollars. What was this marvel of technology that IBM was forced to license you ask? It was an in-store kiosk for making music tapes. What was the reason why they got so much from IBM for a device that sounds like its older than a CD-player? The fault lies with the vague description of a ”System for Reproducing Information in Material Objects at a Point of Sale Location”, which allowed E-Data's lawyers to stretch the scope of their original patent like a balloon to encompass online purchases at home(Bessen 8). Evidently, it didn't matter to the judge what the original invention was capable of, only that the E-Data lawyers had a “valid patent” and they could argue the meaning of the patent to make it much more profitable after the fact. What was the United States Patent and Trademark Office thinking when they issued that patent? Well, what probability happen was that the examiner look at the invention and read the patent claims and said “That certainly covers what the invention does and the invention novel, non-obvious, and enforceable.” See the problem, the examiner studied the invention and passed it but only checked to see if the claims described the invention he did not think about what else the claims might cover... ... middle of paper ... ... Layne-Farrar, and A. Jorge Padilla. "Elves Or Trolls? The Role Of Nonpracticing Patent Owners In The Innovation Economy." Industrial & Corporate Change 21.1 (2012): 73-94. Business Source Complete. Web. 07 Mar. 2014. Matsuura, Jeffrey H. Jefferson vs. the Patent Trolls : A Populist Vision of Intellectual Property Rights. Charlottesville: University of Virginia Press, 2008. Print. Mason, Matt (Matt James). The Pirate’s Dilemma : How Youth Culture Reinvented Capitalism. New York: Free Press, 2008. Print. Reitzig, Markus, Joachim Henkel, and Christopher Heath. “On Sharks, Trolls, and Their Patent prey— Unrealistic Damage Awards and Firms’ Strategies of ‘being Infringed.’” Research Policy 36.1 (2007): 134–154. ScienceDirect. Web. 09 Mar. 2014. White, James E. Idea Rights. James E. White & Assoc., 2013. Web. 26 April 2014.

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