Re:Microsoft and Google jointly sue a patent troll who has s...
by joebadmo on Thursday March 03, 2011 @03:51PM
(#2285709)
Hm. Thanks!
I'll give you 1, but I'm not sure about 2. I guess if there's a pattern of lawsuits over licensing, but isn't a lawsuit what you resort to if someone uses your patented process without licensing?
1) Do they perform original research themselves, or do they purchase patent rights? If they're not actually generating knowledge, then they're rent-seeking.
2) Do they generate income from licenses, or from lawsuits? Licensing IP is a voluntary transaction for both parties, so the people using the IP believe they're paying a fair cost for it. Lawsuits seek to extract maximum payoff through coercive means, usually because the free-market value of their IP would be vanishingly small.