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The Patent Troll Business: An Efficient model to enforce IPR?

  • Pohlmann, Tim
  • Opitz, Marieke

Patent trolls have many faces, since the media uses this expression in various ways. The patent troll phenomenon thus seems to be an ambiguous term that is discussed in several directions. This paper reveals that a patent troll as such has no distinct shape or appearance. Our analysis redeems a troll classification solely from firms’ market position, such as being non-practicing, and shows that a patent troll business can only be defined by the respective activities to enforce IPR. Using 10 cases, of which five are treated in detail, the analysis reveals a distinct typology of the troll business. This paper is furthermore able to identify troll behavior to be: a) an efficient mechanism to enforce IP rights and b) a strategy that yields excessive license fees and causes inefficient negotiation costs.

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File URL: http://mpra.ub.uni-muenchen.de/27342/2/MPRA_paper_27342.pdf
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File URL: http://mpra.ub.uni-muenchen.de/47262/1/MPRA_paper_47262.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 27342.

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Date of creation: 01 Nov 2010
Date of revision: 01 Dec 2010
Handle: RePEc:pra:mprapa:27342
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  1. Justus Baron & Tim Pohlmann, 2010. "Essential Patents and Coordination Mechanisms," Post-Print hal-00508792, HAL.
  2. Shapiro, Carl, 2000. "Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard-Setting," Competition Policy Center, Working Paper Series qt4hs5s9wk, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
  3. Pohlmann, Tim, 2010. "Attributes and Dynamic Development Phases of Informal ICT Consortia," MPRA Paper 27341, University Library of Munich, Germany, revised 01 Jun 2010.
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