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Patent Attorney Axel H Horns' Blog on Intellectual Property Law.

 

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Saturday, November 20, 2004

 

Mr. Philip Mann on certain Patent-related Business Models.

EXTERNAL LINKMr. Philip Mann recently posted an interesting article on the EXTERNAL LINKIP Litigation Blog:
"There's no shortage of people who think the patent system is unfair, broken and an impediment to progress. An EXTERNAL LINKarticle I came across earlier today is a good example of what's commonly heard and highlights many of the misperceptions surrounding patents, patent owners and patent lawsuits.

The point is made, for example, that, "A new industry of companies collecting patents with the sole purpose of suing others for money has formed in the past years." Hmmm...sounds pretty bad doesn't it? Companies formed for the sole purpose of suing others? For money? In America?

The truth is these so-called patent holding companies almost certainly aren't formed for the "sole purpose of suing." They would much rather license their patents and collect a reasonable royalty instead. Suing only becomes necessary when companies using the patented technology decide they don't want to pay. The decision not to pay rests enitrely with the company using the patented technology. [...]"
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