New Study Estimates 2011 Patent Troll Cost of $29 Billion

From the abstract of the study performed by two researchers at the Boston University School of Law:

“In the past, “non-practicing entities” (NPEs), popularly known as “patent trolls,” have
helped small inventors profit from their inventions. Is this true today or, given the
unprecedented levels of NPE litigation, do NPEs reduce innovation incentives? Using a
survey of defendants and a database of litigation, this paper estimates the direct costs to
defendants arising from NPE patent assertions. We estimate that firms accrued $29 billion
of direct costs in 2011. Moreover, although large firms accrued over half of direct costs,
most of the defendants were small or medium-sized firms, indicating that NPEs are not just
a problem for large firms.”

Here is a link to the actual study that can be downloaded for free:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2091210

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