Minimizing the Costs of Patent Trolling

Patent trolling is a serious legal problem. In addressing patent trolling, disclosure requirements and periodic reporting standards will be critical to minimizing the costs of this controversial practice. Patent trolling, at its most problematic, generally refers to patent infringement allegations made by non-practicing entities (NPEs) which produce essentially no products or services except in connection with the buying and selling of patent rights. The targets of these patent “trolls” often lack basic information that is relevant to their evaluation of the claims against them, and policymakers know too little about specialized patent assertion entities and their impact on innovation and technology. For these reasons, both are hindered in their ability to chart an intelligent course in response to NPE infringement allegations. However, if NPEs were held responsible for frivolous litigation by implementation of stricter disclosure requirements, and if a mandatory registration and reporting regime for NPEs were imposed, the costs associated with trolling might be reduced.