Intellectual property partner Sid Venkatesan recently authored an article entitled “Examining the Effects of Patent Troll Legislation on Startups" which discusses the impact of patent troll legislation on emerging companies. An excerpt from the article is included below.
Non-practicing entities (NPEs), or patent trolls, have largely stayed off the political radar for the 12 years since the term "patent troll" was coined. But the political winds have changed, and NPEs have become a favorite whipping boy of Congress — and the president, the FTC, the state of Vermont and the International Trade Commission.
There are six bills in committee in the House and Senate, with a seventh bill currently under discussion, all aimed at curtailing various practices by NPEs. The abundant NPE legislation could be a significant boon for startups. According to one study, startups face significant costs dealing with NPEs, even more so than large companies. What could all these bills mean for startups? Let's look at the proposals.