Patents are a form of intellectual property. They can also be valuable business assets that should be protected. After all, the United States Patent and Trademark Office (USPTO) doesn’t give patents to just anyone. If you have any patents or hope to get one in the future, it’s crucial to understand the difference between patent infringement and patent trolling.
Patent Infringement Happens.
Patent infringement occurs when someone uses your patent without permission. It’s often possible to file lawsuits to stop the infringement and be compensated for any damages.
For example, Brady Brewing developed a new way to brew and bottle custom beers. The USPTO granted them a patent. Their competitor, Bradshaw’s Brewery, began making and selling beer using the methods protected by Brady Brewing’s patent. In response, Brady Brewing filed a patent infringement lawsuit. The company could ask courts to stop Bradshaw from using their patented methods. It’s also possible they might get a judgment against Bradshaw for their lost sales and damage to their reputation.
In this example, the patent infringement seems fairly obvious.
But not all patent lawsuits are legitimate.
But Patent Trolling Is Different.
That’s where patent trolling comes in. Patent trolls use legal loopholes and dubious claims to make money or to stop their competitors from doing so. Operations that use patent trolling tactics might be called “patent assertion companies” or “non-manufacturing patentee.”
Generally, patent trolling can take several forms, including:
- Enforcing a patent despite having no intention of using it.
- Filing baseless patent infringement claims just to stifle competition.
- Buying a patent just to sue a potential competitor.
How would a patent trolling case look for companies like the ones mentioned in the example above? Brady Brewing goes out of business and sells its beer-making patent to Dorsey Microbeverages. Dorsey has no intention of using the Brady patented method to make beer. However, they do hope to put Bradshaw Brewery out of business. When Bradshaw starts using a method similar to their patented one, they immediately file a lawsuit. This situation could be considered patent trolling since Dorsey never expected to use its patent rights for anything other than stifling competition.
Often, companies find it less expensive to settle than to defend frivolous litigation. The patent troller takes the money and sometimes moves on to the next victim.
Are Patent Infringement and Patent Trolling Affecting Your Business?
Talk to an experienced business lawyer. Relief could be available under Florida’s Patent Troll Prevention Act (the “Act”). When targeted by a patent troll, you might send a demand letter, negotiate a settlement, or develop a defense to the troll’s claims. Under the Act, you might be eligible for equitable relief, actual damages, costs and fees, and punitive damages.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.