Click to Skip Ad
Closing in...
  1. Best Memory Foam Mattress
    12:31 Deals

    When 75,000 Amazon shoppers rave about a $130 memory foam mattress, you need to check it o…

  2. Philips Sonicare Deals On Amazon
    08:45 Deals

    These Philips Sonicare deals on Amazon will brighten any smile

  3. Amazon Smart Home Deals
    08:08 Deals

    5 smart home devices on Amazon you’ll wonder how you ever lived without

  4. Apple Watch Series 6 Amazon
    14:59 Deals

    Apple Watch Series 6 is $100 off in this surprise Amazon sale

  5. Best Wireless Charger For iPhone
    13:04 Deals

    3-in-1 wireless charging station for Apple devices is down to $17 at Amazon

Patent trolls cost companies $29 billion in 2011

June 26th, 2012 at 5:05 PM

Patent trolls — that is, entities that purchase patents in bulk and sue other companies for infringement despite not making any products of their own — have rapidly become the bane of the technology industry. But few could have imagined that patent trolling would cost companies a whopping $29 billion a year in expenses, as a new study from Boston University claims. Per Bloomberg, researchers at the BU School of Law have found that businesses paid that massive sum on 5,842 infringement claims filed in 2011 by non-practicing entities, the polite term that the legal community uses for patent trolls.

The study conducted by James Bessen, a lecturer at the BU law school, and Michael Meurer, an economist and BU law professor, found that small businesses were particularly hard-hit by patent troll suits as the share of their income devoted to troll-led patent suits was far greater than the share that large companies had to pay to combat similar patent litigation. As Bloomberg writes, the two men think that “the study illustrates systemic problems in the U.S. patent system” and that “recent court rulings and legislation that scaled back some patent rights only go so far in curbing what they consider a costly nuisance for businesses.”


Popular News