Pushing ‘patent troll’ into the sunlight

In mythology, when a troll is exposed to sunlight, it turns to stone.

Right now, Congress has an opportunity to push an especially egregious type of troll into the sunlight. This one doesn’t live under a bridge or attack hobbits. Instead, it hides behind dubious or vague patents and sues small businesses.

Patent trolls, or “non-practicing entities,” scoop up old or broad patents and then head to court, suing businesses with questionable claims of patent infringement.

Here’s how Fortune magazine described the practice: “The troll model has been wildly successful thanks to a giant supply of suspect patents, and because of an economic asymmetry that makes it cheap for trolls to attack but ruinously expensive for defendants to fight them in court.”

Oftentimes, businesses are forced to settle to end the huge financial drain litigation places on them, even if they haven’t actually violated a patent. It’s sketchy.

The practice threatens a growing number of businesses, but small and mid-sized businesses are at particular risk. And between 2010 and 2014, the number of patent infringement suits in the US tripled.

Bipartisan legislation is working its way through both the U.S. Senate and the U.S. House of Representatives. The House could consider H.R. 9 as soon as the week of July 20. In the Senate, the PATENT Act (S. 1137) has growing support and has made it through committee.

The bills place reasonable restrictions on patent trolls, making it harder for them to abuse the system and force settlements from companies that have done nothing wrong.

The reforms include such common-sense changes as requiring patent trolls to be truthful in their demand letters and include basic information. And it also makes trolls accountable for the costs of frivolous suits.

Maine has been a leader on patent reform, passing similar reforms in 2014.

But without action on the federal level, innovators and entrepreneurs – and businesses of all sizes – are at risk.

Businesses ranging from Google and Facebook to local companies such a Buoy Local are working together to push Congress on reform.

Maine is developing a national reputation as a great place for startup businesses. More than 3,000 people participated in Startup and Create Week in Portland.

Patent reform is one way we can keep that momentum going and encourage smart people with big ideas to put them to work, grow the economy and create jobs.

David Farmer

About David Farmer

David Farmer is a political and media consultant in Portland, where he lives with his wife and two children. He was senior adviser to Democrat Mike Michaud’s campaign for governor and a longtime journalist. You can reach him at dfarmer14@hotmail.com.