How to spot a patent bully
Patent bullies are corporations with large IP holdings that seek strict enforcement of their patents in the marketplace. These companies create assertive licensing campaigns to enforce their patent rights by using intimidation and their size as leverage. Their strategic objectives may simply be revenue generation, but they more often employ strategies to protect a market they dominate or to raise a competitor`s cost base. This activity is a legitimate means for large corporations with huge R&D investments in technology to obtain a return on their investment and establish an even playing field.
The world of patents and patent royalties involves increasingly large sums of money for patent bullies. ``In America alone, technology licensing revenue accounts for an estimated $45 billion annually; worldwide, the figure is around $100 billion and growing fast.`` (The Economist, A survey of patents and technology, Oct. 22, 2005)
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