White House to Crack Down on Patent Trolls

2013/06/28

The White House on Tuesday announced a set of executive actions and legislative recommendations to crack down on the so-called patent trolls and deter abusive patent litigation.

Patent trolls are companies that don't actually make products or provide services, but use patents to obtain license fees rather than to support the development or transfer of technology.

Lawsuits brought by patent trolls have jumped by nearly 250 percent in the last two years, rising from 29 percent of all infringement lawsuits to 62 percent of all infringement lawsuits, according to a report released by the U.S. National Economic Council and the Council of Economic Advisers.

These patent trolls have added significant costs to the innovation ecosystem and sapped investment in research and development, causing great harm to society, the report said.

"Stopping this drain on the American economy will require swift legislative action, and we are encouraged by the attention the issue is receiving in recent weeks," the White House said in a statement. "While no single law or policy can address all these issues, much can and should be done to increase clarity and level the playing field for innovators."

The White House said the U.S. Patent and Trademark Office (PTO) would make new rules that require patent applicants and owners to regularly update ownership information, to prevent patent trolls setting up shell companies to hide their activities.

The White House also hoped the PTO would provide new targeted training to its examiners to cut down overly broad patent claims and educate retailers, consumers and investors about how to deal with patent trolls.

(Source: Xinhua)