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Between 1995 and 2001, practicing entities were getting higher median awards ($6.3 million) in patent lawsuits than non-practicing entities ($5.2 million).
In contrast, practicing entities (non-PAEs) only initiated patent litigation about 16percentt of the time against defendants making under $10 million a year.
Regardless of the standard, requiring patents to be asserted only by practicing entities (or entities practicing the invention) would be an insignificant burden for any well-funded asserting entity.
Of course, while it is not Lex Machina's goal, the data can also be useful to non practicing entities to identify potentially easy targets for assertion campaigns.
And these defensive portfolios do nothing to protect against so-called non practicing entities (NPEs) or "patent trolls", as they have become known.
The SHIELD Act ostensibly aims to protect high-tech companies from patent-infringement suits from Non Practicing Entities (NPEs) by requiring unsuccessful plaintiffs in hardware and software patent cases to pay for the litigation costs of defendants.
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The company is a hybrid between a practicing entity and a "patent troll" in that Kelora offers a search product, but has aggressively pursued a licensing and litigation strategy against a wide range of large and small Internet retailers.
We find that the probability that a traded patent is acquired by an NPE rather than a practicing entity increases in the scope of the patent, in the patent density of its technology field and, contrary to common belief, in the patent's technological quality.
It shows that the traditional Non Practicing Entity model is evolving.
The strong public opinion against the traditional Non Practicing Entity business model has led to proposals, such as the SHIELD Act, admonitions from federal judges, and the like.
Which brings me back to PersonalWeb, a company that blurs the line between a traditional Non Practicing Entity and a startup technology company.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com