Tip:
Highlight text to annotate it
X
http://www.washingtonpost.com/blogs/the-switch/wp/2013/08/01/how-vermont-could-save-the-nation-from-patent-trolls/ Introduction: This morning we are interviewing
Denver-area patent attorney Mark Trenner. Mark has been practicing as a patent attorney
in Colorado for almost 14 years; the past 9 years at Trenner Law Firm. While his practice
focuses primarily on helping small businesses protect their inventions with patents, Trenner
Law Firm assists clients build out all aspects of their intellectual property portfolio,
including copyrights, trademarks, and trade secrets.
Interviewer: The Washington Post recently published an article titled "How Vermont could
save the nation from patent trolls." What do they mean by "trolls?"
Patent Attorney: Patent trolls have been in the news a lot lately. In fact, if you follow
me on Twitter, then you've probably seen links to some interesting articles. Wikipedia gives
a good definition of patent troll: "A patent troll, also called a patent assertion entity
(PAE), is a person or company who enforces patent rights against accused infringers in
an attempt to collect licensing fees, but does not manufacture products or supply services
based upon the patents in question." Sometimes, patent trolls are called patent holding companies.
Interviewer: I've heard that universities and government research laboratories do essentially
the same thing. Patent Attorney: You mean they develop technology,
patent it, and then license the technology to companies.
Interviewer: Right, but universities aren't in the business of making products. So are
they patent trolls? Patent Attorney: No, universities and government
laboratories are not typically labeled as patent trolls. Instead, they are referred
to as a non-practicing entity (NPE). Interviewer: Why aren't they considered to
be patent trolls? Patent Attorney: Universities and research
laboratories are generally considered to be making developments and advancements for the
good of the people. While they have the resources and capabilities to conduct important research,
such as cancer and other preventative disease research, they typically are not well suited
to deploy any products. Instead, these laboratories collaborate with businesses that do have the
means to develop, test, and bring products to market. So no, these laboratories are generally
not considered to be patent trolls. Interviewer: I see, so why the negative connotation
for patent trolls? Patent Attorney: Well you've probably read
in some of the articles I've linked to on my Twitter account, that these patent trolls
obtain patents and then go after companies that are actually making products, and seek
out damages, even though there was really no damage to the patent troll. The patent
troll never tried to bring a product to market. They are just trying to collect money and
even worse, stop legitimate companies from manufacturing products.
Interviewer: So what are states doing to stop these patent trolls?
Patent Attorney: It's interesting, the article says that Nebraska sent a letter to one of
the law firms allegedly representing patent trolls, to leave Nebraska businesses alone.
The article says that the letter apparently "warned [the law firm] that it would face
serious consequences under Nebraska law if it engaged in 'baseless harassment' of Nebraska
businesses or pursued 'costly and destructive litigation'."
Interviewer: I thought the article was about Vermont?
Patent Attorney: Yes, the article explains that Nebraska is the second state going after
these so-called frivolous lawsuits. Interviewer: And Vermont is the first state?
Patent Attorney: Right, apparently Nebraska was inspired by Vermont, who filed a lawsuit
in May against a patent holding company after several Vermont businesses were threatened.
Apparently even two Vermont charities were threatened by the patent holding company.
Interviewer: Are any of the sates successful in deterring patent trolls?
Patent Attorney: I think that is yet to be seen. But, a lot of companies, and even some
charities according to this article, are being threatened with litigation, and so it is definitely
making the headlines lately. Interviewer: Are there any laws specifically
on point? Patent Attorney: The article does mention
the use of Vermont's Consumer Protection Act, and legislation was also passed in May in
Vermont giving someone accused of patent infringement the right to counter-sue if it is in bad faith.
Of course, proving bad faith is a whole other issue in itself.
Interviewer: Sounds like we will be hearing a lot more about patent trolls . . . . Thank
you, I think that's all we have time for today. For more information, be sure to visit Trenner
Law Firm's website at www.us-patentattorney.com and Mark Trenner's blog over at www.ipatentattorney.org