They don't sell products, but they surely use computers internally. Which makes them vulnerable to all sorts of patent lawsuits.
Patent law lets you sue both the person making the software (Microsoft etc.) and the person using it, in this case Lodsys.
But if it were, anyone setting up a patent trolling company would be targeted at future companies as well, which is a very concrete disincentive.
Ex patent trolls would basically run the very real risk of being unemployable, and have trouble starting legitimate ventures as well.
- Filing a frivolous lawsuit makes the plaintiff liable for the defendant's legal expenses.
- Repeatedly filing frivolous lawsuits can get you labeled as a vexatious litigant, and if labeled as such you need a judge's permission to file even a valid lawsuit.
- Lawyers knowingly participating in frivolous lawsuits or vexatious litigation can be disbarred.
For these reasons, I don't think you will see corporations filing a lot of meritless nuisance lawsuits.
I've always understood that as well as restricting other companies from competing with a patent holder, there is also an element of "mutually assured destruction" which would potentially allow negotiation and cross-licensing with companies asserting a patent. Didn't SUN maintain patents for exactly this process?
With copyrights and/or trademarks, I think there's something like losing the rights if you fail to defend them. So people with legitimate, inoffensive uses for things have been quashed because of corporate policy on potentially profitable legal fictions.
edit: Whoa, forgot to complete the thought. The point is, you could lose if you end up just going after the people you don't like, leaving everyone from Apple to Microsoft to Zynga free to use your patents without so much as a licensing fee or even a piece of paper saying they can.
I think patents should be issued on a use it or lose it basis: if you do not make attempts to at least produce or license the product, you should not be allowed to horde it's IP and you it to extort others. Non-practicing entities, aka patent trolls, should be made illegal in general if they aren't making attempts to license their IP.
The better solution is to just end software patents. They have no value in the current software economy.
Although I'd the take legislation in a heartbeat.
Basically, it would be a non profit organization that accepts donations of patents by hackers, and uses them to sue only companies that themselves have used patents offensively.
Blatant patent trolls could also become targeted for life at future businesses - although I'm not sure of the legality of this - to serve as a severe disincentive for this kind of behavior.
Although it might take a while and quite a bit of money to get started, it seems like it would fund itself indefinitely once going, and enough people seem to be pissed off enough about the current situation that a serious amount of brainpower could be donated to the project.
Does anyone see any showstoppers for something like this, or is it just a matter of not having someone benevolent and gutsy enough to pull it off?