Intellectual property has become an increasingly important topic of late. There has been an increase in intellectual property rights. The world is placing more emphasis and importance on ideas rather than goods. The world has also become a smaller and more integrated place and that is why the companies aren’t able to isolate themselves and must operate under the radar. Everything is sourced globally and your products can be found on one touch of your finger on the internet. If someone else has put a patent on it, it will be discovered on time.
One might think that only big companies have a risk of facing patent trolls but this is too far from the truth. The smaller companies are also the target of trolls professionally known as non-practicing entities (NPEs). This is the time when the technology based companies are finding themselves in patent infringement cases. Over the last decade, the fortune 500 companies, as well as a venture, backed startups have at least once been accused of patent infringement. Over 60% percent of the companies have been impacted from patent infringement lawsuits. Many enterprises have not been equipped to respond and manage patent risk. If this sounds like your venture, these are the three things that you need to keep in mind about patent risk.
There are more than 800 NPEs which are active. Their strategy is very simple. They acquire patent directly from owners through patent brokers. They identify the company infringing those patents and file a lawsuit to get paid.
These NPEs suck up the money of the big companies and the budding companies making it hard for them. They spend a lot of money in legal costs and settlement payments.
Any company that uses technology, let alone patents, is at risk. Due to an explosion in the technology industry, too many patents have been issued. They are often not clearly distinct from previously issued patents. Due to this, many tech-based products and services infringe dozens and hundreds of patents. You don’t need to own a patent to be at risk of patent infringement. You just have to be using technology for being at the risk of it. All you can do is be proactive. You can also consult your technology consultant about what can you do about it. Don’t wait for D-day. Be ready beforehand.
NPEs don’t want to prove that you are doing something wrong but they are interested in being paid. All they need is your money. Patents are simply assets for them. They think that you are using their assets and want to be paid in return. Most of the cases are settled outside of court in such a situation. It would thus be better for companies to pay the settlement amount early and avoid the legal costs altogether.
Talk to us about your queries related to Patent, Patent Registration and other Intellectual property questions at LegalRaasta.