Industrial Organization Commons^™

Patent Assertion Entities & Privateers: Economic Harms To Innovation & Competition, Robert G. Harris

Robert G Harris

This paper addresses the problems of aggressive rent-seeking activities by patent assertion entities (PAEs) and privateers. Section II explains why aggressive patent assertion is especially problematic in patent thick products and systems (such as computers, smartphones and software), and why technological developments have increased the number and “density” of patent thickets. Section III addresses the fundamental differences in the strategic positions and interests of practicing entities and PAEs, and explains why those differences affect the conduct of PAEs and increase the opportunities for, and economic harm caused by, their rent-seeking conduct and efforts to engage in patent hold-up. Section IV …