Patent trolling against innovation: status, trends, threats

Abstract

In this paper the economic and legal analysis of the phenomenon of patent trolling. It is shown that the main financial costs caused by the actions of patent trolls, are small and mediumsized innovative companies. Patent trolls undermine the principles of patent law, damage, limit research, hinder innovation, entrepreneurial initiative. As a result, distort competition in the market, slowing technological development affects the interests of consumers. This negative phenomenon is spreading in Ukraine. In order to combat patent trolls offers the following measures: improving the quality of patent examination patent offices of countries, introduction limits on the maximum amount of compensation for infringement of patents, an effective mechanism for testing compulsory licensing in case of firm disuses his invention. The new rules allow companies to explore the newly issued patents and challenge their issuance for nine months, which could potentially eliminate the risk of lawsuits. The Act also imposes new restrictions on the trolls they will not be able to file lawsuits against several companies at once if there is no proof of collusion. The new principle of "one action one respondent" should reduce the number of firms, brought to court.