29th okt, 2010

I stand corrected…patent trolls do make money

A post on Corporate Councel put some of my own previous assertions about trolling being bad business for the trolls in a bad light. Original Troll – Acacia – shows a very nice profit for Q3-2010. Acacia earned more than $ 60 million in Q3 which is a huge difference from last year. 


The reason may be that Acacia has been collecting patents from major companies and consequently have been making better licensing deals. CEO Paul Ryan of Acacia says that “We’re getting more and more deals done without litigation, or at very early stages of litigation,”. This means lower legal costs and thereby a better profit. This could in turn be caused by obtaining quality IP from major players. 


Acacia may be changing the troll name and marking the time of the more well founded NPE´s. 


Now that everyone’s jumping on the NPE bandwagon, being an NPE (or “patent troll”) has almost become downright respectable lately. There is one reason that the NPE business model has become increasingly popular: it works. It is also legal, and often helps protect independent inventors and SMEs from exploitation of their intellectual property by larger, more powerful entities. Like it or not, NPEs are here to stay.

I think the NPE role has changed as well, as the concept has evolved and new entrants have shown that they are not unreasonable.

Nice Video…I have a few comments that I wil do in a seperate post later

Leave a response

Your response: