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

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  • Pohlmann, Tim
  • Opitz, Marieke

Abstract

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.

Suggested Citation

  • Pohlmann, Tim & Opitz, Marieke, 2010. "The Patent Troll Business: An Efficient model to enforce IPR?," MPRA Paper 27342, University Library of Munich, Germany, revised 01 Dec 2010.
    • Handle: RePEc:pra:mprapa:27342
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    References listed on IDEAS

    as
    1. Salant, David J, 2007. "Formulas for fair, reasonable and non-discriminatory royalty determination," MPRA Paper 8569, University Library of Munich, Germany.
    2. Justus Baron & Tim Pohlmann, 2010. "Essential Patents and Coordination Mechanisms," Post-Print hal-00508792, HAL.
    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.
    4. Carl Shapiro, 2001. "Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard Setting," NBER Chapters, in: Innovation Policy and the Economy, Volume 1, pages 119-150, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Catherine Tucker, 2012. "Patent Trolls and Technology Diffusion," NBER Chapters, in: Standards, Patents and Innovations, National Bureau of Economic Research, Inc.
    2. Tucker, C.E., 2012. "Institutions, competition and regulation : Intellectual property and innovation," Discussion Paper 2012-030, Tilburg University, Tilburg Law and Economic Center.

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    Keywords

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    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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