Dealing with Patent Trolls_Ted Garcia

Views:
 
Category: Entertainment
     
 

Presentation Description

Audio PPT for about what Patent Trolls are and How to deal with Patent Trolls

Comments

Presentation Transcript

Dealing with Patent Trolls:

Dealing with Patent Trolls How to navigate this difficult landscape through effective negotiation

Agenda:

Agenda What is a “Patent Troll”? Brief history of patent trolls The True Toll of Patent Trolls Tips for Dealing with Patent Trolls Negotiating Strategies

What is a “Patent Troll”?:

What is a “Patent Troll ”? Source: http://www.inc.com/magazine/201202/kris-frieswick/patent-troll-toll-on-businesses.html

What is a “Patent Troll”?:

What is a “Patent Troll ”? Evil people hiding behind a shell company Also called “Non-Practicing Entities” or NPE Don’t produce anything. Only sue and shake down anyone who does. Like a troll, they pop out of nowhere and demand payment before you can pass and go about your business. Prey on businesses using attorneys and vague patents Ironically, immune to patent lawsuits since they have no products. Threat of massive legal fees causes about 90% of companies sued by patent trolls to settle before trial Extortion game (costs 2-5 million dollars to defend patent)

Brief history of patent trolls:

Brief history of patent trolls Patent system became dysfunctional in the mid ‘90s when many vague patents were handed out Tied to rise of technology and software patents Trolls often use these software or other tech-related patents to do their trolling B road or vague to the point where they may give someone the ability to later claim ownership for an invention that they never dreamed up at the time Patent system is dysfunctional Patent mechanisms are obscure Much need reform is needed but major roadblocks exist Software patents account for 12% of all patents but 74% of litigated patents. Something needs to change.

Brief history of patent trolls:

Brief history of patent trolls In 2012, there were 4700 patent lawsuit and 3000 were from patent trolls, or about 64% Patent troll lawsuits have tripled in the last two years Situation is only getting worse, sadly 25% of all patent cases in US are filed in Marshall, TX Small town with history of siding with patent trolls Many trolls set up their shell companies here so they can sue here Excellent video of this terrible situation here Innovation Act (HR 3309) Bipartisan bill, in 2014, that passed the House, but was killed before it made it to the floor of the Senate by Harry Reid and the trial jury lobbyists Encouraged judges to make patent trolls pay court costs if they lose Forced patent trolls to be more transparent about their identities

The True Toll of Patent Trolls:

The True Toll of Patent Trolls Costs economy $29 billion a year Stifles innovation and hurts the economy Average troll defense takes $2 million and 18 months This is the best case scenario (i.e. winning) Source (left image ): http:// www.networkworld.com/article/2225251/data-center/apple-remains-the-top-target-for-patent-trolls.html Source (right image ): https :// www.ted.com/talks/drew_curtis_how_i_beat_a_patent_troll

Tips for Dealing with Patent Trolls:

Tips for Dealing with Patent Trolls Stay calm and do your homework Do not settle with the patent trolls More will come knocking Always ask specific questions How exactly is the patent being infringed Use the internet USPTO website is very helpful RPX or “Demand Letter Analytics” tool shows troll’s legal history Pretend to be poor Trolls are paid a percentage of what they are able to recover in settlements. Smaller settlements = less troll interest.

Tips for Dealing with Patent Trolls:

Tips for Dealing with Patent Trolls Expose the troll for who they really are Never sign a nondisclosure agreement (NDA) Team up with other companies Joint Defense is stronger. Pool resources. Be Prepared Insurance for patent suits available Don’t fight the patent. Fight the infringement Hard to invalidate a patent Much easier to prove no infringement has occurred

Negotiation Strategies:

Negotiation Strategies Make yourself bigger Team up with other companies if possible Work with patent troll lawyer experts Lobby congress and White House for reforms Bolster your BATNA Set aside money for court defense and possible settlement Sometimes is better to settle and remain in business than go broke from legal fees Work to invalidate their patent or other patents they may own Beware of the halo effect If someone sues you and they are a NPE, don’t assume it is a frivolous patent claim. Many times NPE have rightful claims.

Negotiation Strategies:

Negotiation Strategies Be prepared for hard ball tactics Play chicken. They will blink first if you play long enough Take a hard line in the sand. Give no concessions Ask probing questions. Phrase them in different ways Test the other party Conduct prior-art search to try to invalidate their patent. Threaten them with this or other lawsuits or going public. Go the balcony often Analyze their tactics and their position. Analyze your tactics and your position. Put emotions aside. Do you best to weaken the trolls and strengthen your defense while staying focused and clear-headed.

References :

References Rampton , J. (2015). 12 Tips for Dealing With Patent Trolls. Retrieved December 03, 2016, from http:// www.inc.com/john-rampton/12-tips-to-dealing-with-patent-trolls.html Vakil , B., & Flynn, T. (2016). Texas Takes a Stance Against Patent Trolls. Retrieved December 03, 2016, from http:// www.whitecase.com/publications/article/texas-takes-stance-against-patent-trolls Frieswick , K. (2012). The Real Toll of Patent Trolls. Retrieved December 03, 2016, from http:// www.inc.com/magazine/201202/kris-frieswick/patent-troll-toll-on-businesses.html Curtis, D. (2012). How I beat a patent troll. Retrieved December 03, 2016, from https:// www.ted.com/talks/drew_curtis_how_i_beat_a_patent_troll Heisler , Y. (2013). Apple remains the top target for patent trolls. Retrieved December 04, 2016, from http:// www.networkworld.com/article/2225251/data-center/apple-remains-the-top-target-for-patent-trolls.html Hiltzik , M. (2014). Patent trolls win a huge victory in Congress; consumers lose. Retrieved December 04, 2016, from http:// www.latimes.com/business/hiltzik/la-fi-mh-patent-trolls-20140530-column.html Lewicki , R. J., Barry, B., & Saunders, D. M. (2016). Essentials of negotiation . Dubuque: McGraw-Hill Education .

authorStream Live Help