Buzz Archive:
The Patent Reform Act of 2007: Is Congress Throwing Out the Patent With the Troll?

by Dennis Fernandez & Christopher Fasel, 11/8/2007

Recent debate amongst practitioners in the field of Intellectual Property has focused heavily on the issue of "patent trolls". While this term is in the common parlance, depending on which side of the debate is using the term, the definition can vary dramatically. In its most negative embodiment, the term patent troll refers to an organization that purchases patents from inventors for the sole purpose of gaining profit through the use of legal expertise or financial means to instigate licensing negotiations against any and all infringers. If an acceptable license does not result, the new patent-holding company will pursue an infringement lawsuit.

A less-pejorative embodiment of the term describes a patent owner in the form of a startup company or individual inventor who has not yet had the financial means or development time to begin producing their invention, yet must protect their intellectual property rights that are being infringed by a well-established organization lest the value of the invention be lost completely.

This week, VC Experts relies on the experience of Dennis Fernandez, Managing Partner of Fernandez & Associates LLP & Christopher Fasel, as they give us arguments for and against patent enforcement.