{"id":1041,"date":"2014-01-17T14:48:22","date_gmt":"2014-01-17T14:48:22","guid":{"rendered":"http:\/\/cpip.gmu.edu\/?p=1041"},"modified":"2026-02-03T21:24:03","modified_gmt":"2026-02-03T21:24:03","slug":"two-more-reasons-to-think-twice-before-changing-our-patent-system","status":"publish","type":"post","link":"https:\/\/blogs.uakron.edu\/ualawip\/2014\/01\/17\/two-more-reasons-to-think-twice-before-changing-our-patent-system\/","title":{"rendered":"[Archived Post] Two More Reasons to Think Twice Before Changing Our Patent System"},"content":{"rendered":"<p><em>By Steven Tjoe<\/em><\/p>\n<p>Today, misguided fears of an <a href=\"http:\/\/cip2.gmu.edu\/2013\/08\/12\/the-myth-of-the-patent-troll-litigation-explosion\/\">explosion of patent litigation<\/a> and the <a href=\"http:\/\/cip2.gmu.edu\/2013\/11\/13\/the-nadir-of-patent-troll-rhetoric\/\">specter of the so-called \u201cpatent troll\u201d problem<\/a> continue to influence the popular perception of patent policy.\u00a0 Over the past year, various organizations have spurred a movement to make significant legislative changes to our patent system, despite calls for caution and further investigation by <a href=\"http:\/\/www.law360.com\/articles\/489650\/top-judge-warns-of-havoc-if-anti-patent-troll-bill-passes\">judges<\/a>, <a href=\"http:\/\/www.law360.com\/articles\/498994\">FTC Commissioners<\/a>, former <a href=\"http:\/\/judiciary.house.gov\/hearings\/113th\/10292013\/Kappos%20Testimony.pdf\">USPTO directors<\/a>, and Congress\u2019 very own Government Accountability Office (<a href=\"http:\/\/www.gao.gov\/products\/GAO-13-465\">GAO<\/a>).\u00a0 With the final implementation of the America Invents Act (AIA) now less than a year old, the speed and the magnitude by which the American patent system is being overhauled has wrought uncertainty throughout the innovation economy.\u00a0 Two pieces published last week show that there is good cause to think twice before making further changes to our patent system.<\/p>\n<p>First, in <a href=\"http:\/\/www.heritage.org\/research\/reports\/2014\/01\/a-balanced-approach-to-patent-reform-addressing-the-patent-troll-problem-without-stifling-innovation\"><i>A Balanced Approach to Patent Reform: Addressing the Patent-Troll Problem Without Stifling Innovation<\/i><\/a>, John Malcolm and Andrew Kloster of The Heritage Foundation debunk the myths underpinning the calls for legislative action on patents.\u00a0 Regarding the myth of a patent litigation explosion, Malcolm and Kloster observe that contrary to popular belief, the volume of patent lawsuits has remained remarkably stable, with the rate of infringement suits filed at 1.5 percent of the total patents issued by the PTO.\u00a0 Moreover, the rise in the total number of infringement lawsuits can be attributed to the AIA\u2019s new joinder rules and the fact that the PTO has issued more patents in recent years, a fact that likely reflects an actual increase in patent-worthy innovation.<\/p>\n<p>Malcolm and Kloster also explore the harrowing specter of the so-called \u201cpatent troll,\u201d noting that little evidence exists to support allegations of a systemic problem. \u00a0\u00a0After disposing of the oft-cited statistic that patent trolls are costing the American economy $29 billion annually (see <a href=\"http:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=2117421\">here<\/a> and <a href=\"http:\/\/www.gao.gov\/products\/GAO-13-465\">here<\/a>), Malcolm and Kolster pinpoint a central pitfall of the legislative reform proposals today: the overly broad definition of a patent troll that \u201cthrow[s] the baby out with the bathwater.\u201d\u00a0 Instead, Malcolm and Kolster recognize that patent aggregators play a fundamental role in the innovation economy: \u201cpatent aggregators facilitate an efficient division of labor between inventors and those who wish to use those inventions for the betterment of their fellow man, allowing inventors to spend their time doing what they do best: inventing.\u201d\u00a0 Recognizing this, Malcom and Kolster conclude:<\/p>\n<blockquote><p>The proper way . . . \u00a0to address patent trolls is by using the same means and methods that would likely work against \u201cambulance chasers\u201d or other bad actors who exist in other areas of law, such as medical malpractice, securities fraud, and product liability . . .<\/p><\/blockquote>\n<p>Indeed, this critical observation that litigation abuse in the patent context is no different than litigation abuse in any other area of law \u2013 and can be dealt with in similar fashion \u2013 \u00a0is sorely lacking in the patent policy discussions today.<\/p>\n<p>Brian O\u2019Shaughnessy cuts to the heart of the issue in his insightful essay, <a href=\"http:\/\/www.lesusacanada.org\/featured-articles\/2014\/federal-circuit-takes-a-swipe-at-baseless-patent-litigation\"><i>Federal Circuit Takes a Swipe at Baseless Patent Litigation<\/i><\/a>.\u00a0 The essay reviews the Federal Circuit\u2019s recent decision in <i>Kilopass Technology, Inc. v. Sidense Corp.<\/i>, and demonstrates that the courts are well-equipped and willing to deal with abusive patent litigation on a case-by-case basis.\u00a0 As O\u2019Shaughnessy succinctly concludes:<\/p>\n<blockquote><p>Targeted, incremental reform specifically addressing the acts of specific culpable litigants offers an effective fix without compromising, or further complicating, our patent system as a whole.\u00a0 Our patent system is the most effective economic engine known to man.\u00a0 Prudence dictates that we tinker with it cautiously.<\/p><\/blockquote>\n<p>As the Senate moves ahead to consider various proposals on patent litigation reform, we should exercise an abundance of caution.\u00a0 There is good cause to pause and think twice before legislating further systemic changes to our patent system that could damage our innovation economy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Steven Tjoe Today, misguided fears of an explosion of patent litigation and the specter of the so-called \u201cpatent troll\u201d problem continue to influence the popular perception of patent policy.\u00a0 Over the past year, various organizations have spurred a movement to make significant legislative changes to our patent system, despite calls for caution and further [&hellip;]<\/p>\n","protected":false},"author":3627,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7,26,35,36,37,1],"tags":[],"class_list":["post-1041","post","type-post","status-publish","format-standard","hentry","category-commercialization","category-innovation-2","category-patent-law","category-patent-licensing","category-patent-litigation","category-uncategorized"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/blogs.uakron.edu\/ualawip\/wp-json\/wp\/v2\/posts\/1041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.uakron.edu\/ualawip\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.uakron.edu\/ualawip\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.uakron.edu\/ualawip\/wp-json\/wp\/v2\/users\/3627"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.uakron.edu\/ualawip\/wp-json\/wp\/v2\/comments?post=1041"}],"version-history":[{"count":1,"href":"https:\/\/blogs.uakron.edu\/ualawip\/wp-json\/wp\/v2\/posts\/1041\/revisions"}],"predecessor-version":[{"id":15935,"href":"https:\/\/blogs.uakron.edu\/ualawip\/wp-json\/wp\/v2\/posts\/1041\/revisions\/15935"}],"wp:attachment":[{"href":"https:\/\/blogs.uakron.edu\/ualawip\/wp-json\/wp\/v2\/media?parent=1041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.uakron.edu\/ualawip\/wp-json\/wp\/v2\/categories?post=1041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.uakron.edu\/ualawip\/wp-json\/wp\/v2\/tags?post=1041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}