A working paper out of Santa Clara University examines the cost of “patent trolls” on tech start-ups. Legal costs to large companies have been heavily publicized but the toll on young firms is often overlooked. The rise in both amount of patents filed and number of lawsuits over said patents has grown exponentially. A well worn example of the grown in patents is Microsoft. They filed five patents in the 1980s, 1,116 during the 1990s and a whopping 12,330 during the first ten years of this century. The number of legal actions has kept pace with the growth in filings.
Amazon sued Barnes and Noble over their ridiculously broad “one click checkout” patent in an apparent effort to deliver a knock out blow to their ailing competitor. As tech giants grow their intellectual property stockpile and see languishing growth prospects, we expect an explosion in suits against nimble up-start competitors.
Contact Calculated Risk Advisors today to discuss better protecting your company from the costs of intellectual property litigation costs.