Report is proof positive that patent trolls have negative economic impact

The report shows a decrease in venture capital availability as a result of litigation

“Patent troll” has become a ubiquitous term for the non-player entities seeking to extort cash from legitimate patent holders. While not all non-practicing entities use the patents they hold in this way, a new report indicates that those who do may be causing considerable damage to burgeoning startups. The report was published on Ars Technica on June 11.

According to the report, conducted by Catherine E. Tucker, a professor of marketing at MIT’s school of business, there is a direct correlation between what venture capitalists are willing to contribute startups and their risk for litigation.

Executive Editor

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Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

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