Lacking Patent Litigation Reform Will Rob Startups of ‘Precious Resources,’ CEA Blogger Says
If patent litigation reform legislation is “left unresolved,” that will continue to drain startups of “precious resources,” Bronwyn Flores, CEA policy and industry communications coordinator, said Friday in a blog post. “Growing a startup is tough enough,” Flores said. “But…
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lawyers and shell companies that contribute nothing to the innovation economy -- we call them ‘patent trolls’ -- are taking advantage of loopholes in the current patent system to legally extort startups, draining $80 billion a year from our economy.” Enactment of patent litigation reform legislation in the House and Senate will mean that “the tech community can send patent trolls back under the bridge,” she said. Such firms “have been abusing the system for years, but recent data shows they’re more aggressive than ever,” she said. “Troll lawsuits are up 500% since 2005, and 2015 is on its way to becoming a record-breaking year for frivolous patent lawsuits.” Such firms “are in the legal extortion business, and business is good,” she said. “Their actions are low-risk and high-reward -- under the current patent system, there are no disincentives.”