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Obama Hints Patent Law Reforms Need to Address Patent Trolls

published February 20, 2013

By Author - LawCrossing
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( 4 votes, average: 3.5 out of 5)
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02/20/13

Obama Hints Patent Law Reforms Need to Address Patent Trolls
On Thursday, President Barack Obama said that U.S. patent reforms need to work more to address the issue of patent trolls, or companies which without productivity, thrive on suing companies for patent infringement. When an entrepreneur told Obama that she and her friends were withheld from launching their business for fear of being targeted by patent trolls, the President reacted forcefully.


Speaking of patent trolls, Obama said, “They don’t actually produce anything themselves … They are essentially trying to leverage and hijack somebody else’s idea and see if they can extort some money out of them.” He also added, “Our efforts at patent reform are only about halfway to where we need to go.”

Hi-tech companies have raised numerous complaints before regulators about big patent licensing companies that are not engaged in any manufacturing themselves, but are de facto in the business of suing businesses, especially start-ups, using essentially weak patents. People abandon businesses, or are forced to settle, to avoid the costs of litigation. Patent trolls have created an environment of fear for start-ups. Recognizing the fact, Obama called for “smarter patent laws,” to address problems caused by these “non-practicing entities.”

He further expressed, “I’m an ardent believer that what’s powerful about the Internet is its openness and the capacity for people to get out there and just introduce a new idea with low barriers to entry … We also want to make sure that people’s intellectual property is protected.”

While the patent reforms, The America Invents Act, signed by Obama in 2011 is mainly focused on reducing costly patent litigation, it has only one minor provision aimed at checking the activities of patent trolls. The patent reforms made only one significant change – it moved from the rule of granting patents from those who were first to invent, to those who were first to file the paperwork. In effect, this has caused a spate in filing fast paperwork, giving rise to weak cases, and aiding rather than hindering the activities of patent trolls.

published February 20, 2013

By Author - LawCrossing
( 4 votes, average: 3.5 out of 5)
What do you think about this article? Rate it using the stars above and let us know what you think in the comments below.

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