Ray Felts is North American president of crowdsource patent-research company AOP.
You’re a venture capitalist. You just invested in a promising startup, e-Widgets. The future looks bright. Suddenly, out of nowhere, e-Widgets gets a certified letter in the mail. The letter claims that the company’s flagship software is infringing on an existing patent. Instead of focusing on innovation that e-Widgets can bring to market, the company suddenly gets sidetracked into a legal battle that could ultimately destroy its business.
This is not an uncommon scenario.
Patent trolls, a common term for non-practicing entities (NPEs), are shell companies that do not design, manufacture or distribute products. Rather, their sole purpose is to acquire and license patents to unsuspecting businesses. Last year, NPE litigation cost tech companies $29 billion, up more than 400 percent from 2005.
To read the original article: Is a patent troll watching your business now? | MedCity News
