Resource title

On Sharks, Trolls, and Other Patent Animals - 'Being Infringed' as a Normatively Induced Innovation Exploitation Strategy

Resource image

image for OpenScout resource :: On Sharks, Trolls, and Other Patent Animals - 'Being Infringed' as a Normatively Induced Innovation Exploitation Strategy

Resource description

Patent trolls (or sharks) are small patent holding individuals or firms who trap R&D intense manufacturers in patent infringement situations in order to receive damage awards for the illegitimate use of their technology. While of great concern to management, their existence and impact for both corporate decision makers and policy makers remains to be fully analyzed from an academic standpoint. In this paper we show why patent sharks can operate profitably, why they are of growing concern, how manufacturers can forearm themselves against them, and which issues policy makers need to address. To do so, we map international indemnification rules with strategic rationales of small patent-holding firms within a game-theoretical model. Our central finding is that the courts’ unrealistic consideration of the trade-offs faced by inadvertent infringers is a central condition for sharks to operate profitably. Keywords: Patent, patent shark, patent troll, damage award, infringement JEL Classifications: M00, M11, M21, K00, K11, K33

Resource author

Markus Reitzig, Joachim Henkel, Christopher Heath

Resource publisher

Resource publish date

Resource language

eng

Resource content type

application/pdf

Resource resource URL

http://hdl.handle.net/10398/7249

Resource license

Check the according license before adaptation. When adapting give credits to the original author.