Antitrust Concerns of Patent Acquisitions

Ilene Knable Gotts, Scott Sher, Oct 01, 2012

Recent events demonstrate that patents increasingly are being purchased and used for anticompetitive means. For example, patent assertion entities (also known as “patent trolls” or “PAEs”) collect patents to extract high licensing fees; competitors acquire patents to create blocking positions that serve to exclude other competitors from competing in downstream markets; and firms acquire patents to create “patent thickets,” which are patent collections on such a scale to make it difficult for smaller competitors to evaluate potential infringement with reg…

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