Congressional Troll Study

The Congressional Research Service recently released a twenty–page report on patent assertion entities/non–practicing entities/patent trolls. Worth a more thorough analysis than this blog will offer, we note that the mere fact that Congress commissioned such a report demonstrates some not insignificant interest about this corner of the patent litigation world—and the fact that the report features the “troll” moniker in its title (albeit in quotes) may suggest a lean in the negative direction.

The report, authored by Legislative Attorney Brian Yeh, offers a thorough overview of the current debate and controversy regarding trolls, and particularly the impact of a “troll toll” on innovation. Following a summary of the SHIELD Act, the report briefly discusses other potential legislative options, including IT–specific reform (troll activity is concentrated on patents related to software, the Internet, and electronics), improving notice by reforms focusing on weeding out abstract or ambiguous patents through legal changes or more transparency in the application process, reducing leverage by eliminating the ability of a troll to seek an exclusion order at the International Trade Commission (banning imports into the United States of infringing products) or changing royalty calculation rules, making it more difficult for a patent holder to “lay in wait” by shortening the patent terms or providing other consequences for dormancy, and requiring publication of patent assignment and license terms.

Much to digest over the weekend in this short but substantial study.