Today, I want to discuss the topic of state-funded or state-controlled patent operations. It has long been the case that several countries, including France, Japan, and Korea, have state-operated patent administrations. These patent operations function the same way as private trolls do, in that they buy up and own patents, then use those to deter other businesses from competing.
This is extremely problematic because it is harmful to competition and prevents innovation from happening. It is an abuse of what patents are meant for, in that they are no longer protecting inventors and innovators, but rather just harming other companies that may want to compete. In fact, this is the exact reason that China is joining this patent game -- because they want to protect domestic businesses against international competition. This protectionist attitude is harmful to competition and ends up hurting domestic consumers by denying them access to better products at cheaper prices.
Patent trolls, as we have discussed several times before, are extremely harmful to the economy. A Boston University Law study quantifies the impact that patent trolls have on the American economy, quoting a $29 billion impact to businesses last year from direct costs, such as legal fees. This figure does not even take into account all the losses associated with hindered innovation and productivity.
The problem of patent trolling is even further magnified when the actor is a state government. Many state governments have admitted that they use these tactics maliciously to hurt foreign companies in favor of domestic ones. Since the government of the country in question is the one adjudicating any international patent conflicts, it has a huge ability to bend the law in favor of the domestic companies. This is a violation of justice and is a serious impact to American businesses as well.
Source: http://www.washingtontimes.com/news/2014/aug/31/roff-the-frightening-emergence-of-government-paten/
This is extremely problematic because it is harmful to competition and prevents innovation from happening. It is an abuse of what patents are meant for, in that they are no longer protecting inventors and innovators, but rather just harming other companies that may want to compete. In fact, this is the exact reason that China is joining this patent game -- because they want to protect domestic businesses against international competition. This protectionist attitude is harmful to competition and ends up hurting domestic consumers by denying them access to better products at cheaper prices.
Patent trolls, as we have discussed several times before, are extremely harmful to the economy. A Boston University Law study quantifies the impact that patent trolls have on the American economy, quoting a $29 billion impact to businesses last year from direct costs, such as legal fees. This figure does not even take into account all the losses associated with hindered innovation and productivity.
The problem of patent trolling is even further magnified when the actor is a state government. Many state governments have admitted that they use these tactics maliciously to hurt foreign companies in favor of domestic ones. Since the government of the country in question is the one adjudicating any international patent conflicts, it has a huge ability to bend the law in favor of the domestic companies. This is a violation of justice and is a serious impact to American businesses as well.
Source: http://www.washingtontimes.com/news/2014/aug/31/roff-the-frightening-emergence-of-government-paten/
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