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Patent Intermediaries and Litigation

In: Patent Intermediaries

Author

Listed:
  • Mario Benassi

    (University of Milan)

  • Miryam Martin-Sanchez

    (University of Milan
    Comillas Pontifical University-ICADE)

Abstract

Originally, patents were designed to foster innovation while ensuring profit for innovators. However, an alternative way to monetize patents has emerged in recent decades: the exploitative use of patents in litigation. This new business model for intermediation is exercised primarily by PAEs. Metaphorically, PAEs can be portrayed as farmers engaged in a continuous cycle of sowing and reaping. The first stage, or “sowing time,” encompasses the pre-enforcement activities in which PAEs engage, that is, the acquiring and monitoring process through which they identify potential patent infringers. The second stage, or “harvesting time,” includes either the set of activities related to enforcement and settlement or the alternative of enforcement and verdict (post-enforcement activities). This chapter first analyzes this new business model for intermediation and then examines why operating companies are more vulnerable than PAEs in court. The chapter concludes with the reasons for and implications of blurring the limits between opportunistic litigation and predatory infringement.

Suggested Citation

  • Mario Benassi & Miryam Martin-Sanchez, 2022. "Patent Intermediaries and Litigation," Springer Books, in: Patent Intermediaries, chapter 7, pages 157-183, Springer.
  • Handle: RePEc:spr:sprchp:978-3-031-10310-0_7
    DOI: 10.1007/978-3-031-10310-0_7
    as

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