NMHC/NAA’s position on patent trolls was reaffirmed by this FTC study as we continue to actively support comprehensive patent litigation reform to rein in related abuses. We remain hopeful that bipartisan reform can be passed next year despite several failed attempts by lawmakers.
Currently, patent trolls are known to purchase extremely broad patents to make predatory claims of infringement. In most cases the patents involved are not for an idea or technology that the patent troll invented or even a product that they manufacture.
The patents instead serve as a vehicle to extort money out of businesses for being an end-user of a product. Businesses are often left with no real recourse and pay the demanded licensing fee or settle out of court. Ultimately, this is done to simply avoid the long, costly legal process that they would encounter if they chose to fight back.