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The first kind, academic institutions, acquire patents to protect the research work of their faculty and researchers while licensing others to use the results of the research produced without commodifying the patent. They do not practice, develop, manufacture, or otherwise commercialize the patent.
Introduction Patenttrolls are entities that do not actively develop their inventions but instead acquire patent rights for obvious inventions to prevent others from working on them or to collect licensing fees. In a way, patenttrolls serve a purpose, much like lawyers.
A number of small providers are receiving patent demand letters with a settlement or licensing offer to avoid litigation. Many of these letters are a typical part of the playbook of entities that have been variously called “non-practicing entities” (NPEs) or “patenttrolls.” How should you respond? Should you respond?
This is the latest in the series titled “NPE Showcase,” where we discuss high-volume non-practicing entities (or as some call them, “patenttrolls”). This installment will focus on a company named Sockeye Licensing TX, LLC. NPEs are also known to limit their license when suing software companies.
Individuals and companies commonly engage in the strategic purchasing of critical blocking patent portfolios. For example, the rise of patenttrolls, who litigate cheaply-bought patents, use the IP system as a legal weapon. Moreover, damage demands in litigation cases involving IP are rising.
In industries such as biotechnology, pharmaceutical research, and software development, companies are increasingly sharing IP through licensing agreements, cross-industry partnerships, and open-source platforms. This will reduce administrative burdens and enhance cross-border patent collaboration.
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