The PATENT Act: Why Patent Trolls Are a Problem for Newspapers

THE PATENT ACT: WHY PATENT TROLLS ARE A PROBLEM FOR NEWSPAPERS Patent trolls are patent holders who do not practice the patented invention, but rather seek to capitalize on the patent's value. A patent troll seeks out ambiguously worded patents being sold at auctions often by bankrupt companies attempting to liquidate their assets. They then demand payment of licensing fees or threaten infringement litigation. Due to the high costs associated with such abusive litigation, many companies chose to pay the troll to settle the suit. In a recent case, a patent plaintiff accused several companies, including newspapers, of infringing on its 1998 patent Digital Library System. The troll accused the companies of infringing on their use of Internet streaming, such as "cataloguing, organizing, searching, rating, and provisioning of digital multimedia data." The "business method" patents, such as ways to convert material for the Web, can be used by trolls to target newspaper publications that are expanding to digital platforms. Due to the vague nature of the patents distributed by the U.S Patent and Trademark Office, trolls seek out commonplace functionalities performed on a computer or the Internet, such as a search bar or online shopping cart, in order to capitalize on the digital movement. On Wednesday, April 29, the Senate Judiciary Committee introduced The Protecting American Talent and Entrepreneurship Act (PATENT Act) in order to make necessary reforms to stop abusive patent litigation and prevent bad actors from undermining the innovative intentions of the U.S patent system. The Newspaper Association of America as part of the coalition United for Patent Reform, supports the provisions of the PATENT Act that create risks for bad actors, curbs abusive demand letters, and increases transparency. The PATENT Act is commonsense legislation that will protect American businesses from patent trolls while reaffirming our commitment to innovation. First Published: May 19, 2015 via The PATENT Act: Why Patent Trolls Are a Problem for Newspapers.