Patent trolls are stifling innovation

Posted on Thursday, Jun 12 2014 @ 11:46 CEST by Thomas De Maesschalck
A study by MIT's Sloan School of Business claims patent trolls are having a very negative effect on startups. Catherine Tucker, professor of marketing, explains that over the last five years, heavy patent ligitation scared off nearly $22 billion in venture capital funding.
The study defines "frequent litigators" as companies that file 20 or more patent lawsuits, which limits the definition to true-blue "patent trolls," or Patent Assertion Entities (PAEs), the term used by the paper. The study covers the period from 1995 to 2012.

Tucker's paper estimates a 95 percent confidence interval for the amount of lost investment to be between $8.1 billion and $41.8 billion. Those numbers are relative to a baseline of just under $131 billion of investment that actually occurred during that five-year period time.
Full details at ARS Technica.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



Loading Comments