August 8, 2011

If you want to see more jobs created – change #patent laws

I’m not talking about a new company that had an idea that someone beat us to. No sir. I’m talking about companies that have been doing business the same way for years that are getting hit by patent trolls . These aren’t operating companies that are trying to protect their business. These are companies that aggregate patents and raise capital for the sole purpose of suing companies and extorting money from them.
It’s bad for my little companies. It’s horrific for bigger companies. It’s so bad that  major tech companies are  buying big collections of patents not because they want to own the intellectual property but rather because they want the ability to respond to patent lawsuits with a lawsuit of their own. It’s like playing a game of thermo nuclear war. If all sides have “nuclear patents” they can respond to patent litigation with equal force . In other words, if you have enough “nuclear patents” no one will sue you for patent infringement because you have enough power to respond in kind. Its crazy and costing this country jobs.
Google just bid $900mm to buy a patent collection. Those patents ended up being sold for $4.5BILLION dollars .  That is money that for could have  gone to job creation.

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