Patent Attorney and Founder
How Patents Are Misused in Today’s Marketplace
In today’s fast-paced and competitive business world, patents play a pivotal role in protecting innovations and giving inventors the exclusive right to capitalize on their ideas. But with these protections come opportunities for misuse. As patents are meant to strike a balance between incentivizing innovation and promoting public benefit, some entities, particularly large corporations, have found ways to exploit the system for their own gain.
In this article, I’ll shed light on two common ways patents are misused and what you can do to navigate these complexities.
Understanding Patent Misuse
Patent misuse occurs when patent owners leverage their exclusive rights in ways that are contrary to the public good or extend beyond the intended scope of the patent law. Often, large corporations are the primary culprits, and they do so in the following major ways:
- Extending Patent Life Beyond 20 Years
- Patent Trolling by Non-Practicing Entities (NPEs)
Let’s dive into these two scenarios to better understand how misuse occurs and what it means for inventors and businesses today.
Misuse #1: Extending the Life of a Patent Beyond 20 Years
One of the most common forms of patent misuse involves extending the life of a patent beyond its intended 20-year term. As we know, patents are granted for a limited time—typically 20 years from the date of filing. After this period, the patented invention becomes part of the public domain, and anyone can use, manufacture, or sell the product without paying royalties to the patent holder. This system is designed to balance the rights of inventors with the public’s access to knowledge and innovation.
However, larger companies often find ways to extend the economic benefit of their patents beyond the 20-year mark through licensing agreements. This usually involves bundling the patented subject matter, whether it’s a product or software as a service (SaaS), with other technologies, proprietary know-how, or trade secrets. In these cases, the patent becomes part of a package deal that continues generating revenue long after the patent itself has expired.
For instance, a company might tie a licensed patent to additional services or technical know-how, effectively prolonging the control and profit over expired intellectual property. This is not only ethically questionable but also runs counter to the policy goal of making innovations publicly available after the patent period ends.
The Consequences of Extending Patent Life
The core issue with this misuse is that it undermines the whole purpose of the patent system, which is to ensure that, after a limited time of exclusivity, the public can freely benefit from new inventions. By extending the economic life of a patent through licensing tactics, companies continue to generate revenue from innovations that should have entered the public domain.
According to Bold Patents (https://boldip.com/patent-process/), once a patent expires, its proprietary rights should pass to the public, allowing for broader use and further innovation. When companies bypass this rule, they inhibit competition and innovation, limiting the benefits consumers and other businesses could gain from using that technology.
Misuse #2: The Role of Patent Trolls
Patent trolls, or non-practicing entities (NPEs), are another controversial aspect of the modern patent system. These are individuals or companies that own patents but don’t actually produce any goods or services based on those patents. Instead, their business model revolves around enforcing patent rights, typically through lawsuits, against companies that may unknowingly infringe on their patents.
Patent trolls often get a bad reputation because they don’t actively contribute to the market by bringing new products or services to life. Instead, they wait for others to infringe on their patent rights and then pursue legal action. While it may seem that patent trolls are not contributing to innovation, they do have the legal right to enforce their patents.
As mentioned earlier, the U.S. Patent and Trademark Office (USPTO) does not act as a police force for patents. It’s up to the patent owner to enforce their rights if they believe someone is infringing on their intellectual property. Patent trolls take advantage of this by holding onto patents without any intention of commercializing them, instead profiting from litigation and settlements.
The Debate Around Patent Trolls
The public’s perception of patent trolls is divided. Some view them as opportunistic entities that stifle innovation, while others see them as rightful enforcers of intellectual property rights. As Bold Patents highlights (https://boldip.com/protecting-your-idea/), owning a patent means having the legal authority to stop others from making, using, or selling your invention—even if you don’t intend to bring the invention to market yourself.
Critics argue that patent trolls misuse the patent system by focusing solely on litigation rather than advancing technology. However, supporters suggest that they play a vital role in ensuring that inventors, even those who don’t commercialize their ideas, have their rights protected.
Navigating Patent Misuse: What You Can Do
Understanding how patents can be misused is essential for inventors and businesses alike. Whether you’re an inventor looking to protect your idea or a business interested in using patented technology, it’s crucial to be aware of potential pitfalls.
Here are some takeaways:
- Be wary of licensing agreements that extend beyond the life of a patent. If you’re licensing patented technology, make sure the terms are clear, and you’re not paying for expired rights.
- Know your patent rights. If you’re a patent holder, familiarize yourself with the boundaries of your rights and how to enforce them. Use resources like Bold Patents (https://boldip.com/what-we-do/) to get expert advice on protecting your intellectual property.
- Don’t fall into the patent troll trap. While it’s important to enforce your patent rights, be mindful of how you do it. Engaging in litigation for the sole purpose of profit, without contributing to innovation, can damage your reputation and potentially lead to legal challenges.
- Seek expert legal advice. Patent law can be complex, and it’s easy to fall into traps that could cost you down the line. Consulting a patent attorney, such as those at Bold Patents (https://boldip.com/contact/), can help ensure that you’re staying on the right side of the law.
Call to Action: Secure Your Intellectual Property with Bold Patents
Whether you’re looking to protect your inventions from misuse or avoid falling into legal traps, securing expert legal advice is essential. At Bold Patents, we’ve helped hundreds of inventors navigate the patent process, ensuring their rights are protected while avoiding common pitfalls.
If you’re ready to take the next step in protecting your intellectual property, book a free discovery call with Bold Patents today (https://boldip.com/contact/). Let us help you turn your bold ideas into valuable assets.
Go Big. Go Bold.