defensive patent

defensive patent

The legal rights to an invention that is created or purchased by an organization to fight, avoid or help settle a patent infringement lawsuit levied against it in the future. Contrast with the traditional purpose of a patent, which is to eliminate competition or make money from royalties.

Especially in the mobile computing arena, companies have armed themselves with defensive patents to be able to countersue as well as cross license inventions to avoid monetary damages. Since the turn of the century, billions have been spent for patents from companies that no longer need them. Hundreds of patents can be created for any product and cover trivial actions such as which direction a screen is swiped to unlock a device.
References in periodicals archive ?
(128.) See About OIN, OPEN INNOVATION NETWORK, http://www.openinventionnet-work.com/about-us/(last visited May 22, 2018) ("The Open Invention Network is a shared defensive patent pool with the mission to protect Linux.").
In addition to accessing the defensive patent portfolio, the startup can also benefit from strategic consulting in developing and growing their own patent portfolios.
According to De Vries, patent eligibility developments are critical to in-house counsel's understanding of the strength of their own patent portfolios, developing defensive litigation positions for dealing with non-practicing and competitor assertions alike, and strategizing for pursuing and responding to both competitor and defensive patent assertions.
The "collector" type is more in line with the concept of a patent troll and is classified further into "patent enforcement company" and "defensive patent aggregator." Both business models generate profits by winning actions involving patent fees and infringements; they therefore focus on the possibility of patent infringement lawsuits when reviewing a patent.
Of course, to best understand the proper mix of offensive and defensive patent assets, one must have a clear idea as to what those terms mean.
Other organizations, both commercial and nonprofit, are working together to find new ways to work within the existing system, using such mechanisms as defensive patent pools, patent commons, and new licensing structures that give participants more or less free access to one another's technology in exchange for a promise not to file infringement claims.
Open Innovation: The Defensive Patent License As a New Approach to
"The Economics and Controversies of Non-practicing Entities [NPEs]: How NPEs and Defensive Patent Aggregators Will Change License Market," Part I, Les Nouvelles, March, 55-68, Part II, Les Nouvelles, June, 147-55
At a minimum, these thickets require firms to expend significant resources maintaining large defensive patent portfolios.
patent holders to use defensive patent filing strategies and patent
Among those strategies, defensive patent aggregation strategies involve partnering with companies that buy portfolios of patents that may be of interest to a particular company and paying a membership fee to share in the patent rights.
(30) In a defensive patent strategy, a business method patent may be useful as a shield if the patent owner is sued and allegations are made that his or her patented system infringes upon an earlier patented system.