Is the current state of patent litigation threatening to kill US innovation? NPR’s This American Life dives into the seedy world of patent trolling, and how the legal side of technology licensing is threatening the source of new ideas for every industry.
Critics of open innovation often like to say that the only ones making money from it are the lawyers.
Companies actively engaged in open innovation and technology scouting can be highly vulnerable to companies who were formed not for providing any goods or services but entirely for the purpose of filing IP litigation. These groups have major funding sources behind them and use business obfuscation techniques like employee-less shell companies and NPEs (non-practicing entities) in very “grifter-like” ways.
Some have even likened these organizations to a type of “Patent Mafia,” who employ “protection” schemes to profit either through lawsuits, settlements or strong-armed licensing agreements.
Listen to the hour-long radio feature: When Patents Attack!
Or download a .pdf transcript by clicking here.