Nowadays, patents have become an essential point of invention in the competitive business era. However, patent trolls are also a global threat, especially in the technology sector. Instead of acknowledging product inventions, these patent monetizers exploit the law solely for profit.
Are you worried about this? It’s okay, you are not alone. You can ask Am Badar & Am Badar for help in dealing with troll litigation. Contact us now for Patent Services and check out our insights pages to get up-to-date information about intellectual property laws.
Let’s explore more about the definition of trolls in patents and also how to protect our brand by the explanation below.
What are Patent Trolls?
Nowadays, there are a lot of companies seeking to profit by suing other companies that use their patents. They usually buy patents with a low price from underdeveloped or unstable companies and use them to gain a lot of profit. They can be called patent monetizers or trolls.
Patent trolls are entities that hold numerous patents but do not use them to produce or develop products. Instead, their primary strategy is to leverage these patents to extract financial settlements through litigation or licensing fees.
Ironically, the patent companies grant patents for ideas that aren’t original or still groundbreaking. Sometimes, these patents can be very vague because they cover basic or obvious concepts that shouldn’t have been patented.
The patent companies then use the broad patent to send threatening letters to companies they claim are violating their inventions. These letters usually demand such a payment as a licensing fee. It can be tens or even hundreds of thousands of dollars, or face a lawsuit.
These tactics for troll activities can pose a challenge and impact many parties. If you don’t fully understand how these tactics work, you could potentially become a victim.
However, some people or companies that get infringement letters from trolls, prefer to choose to pay the licensing fee. Even if they think that the patent is not valid or their product doesn’t violate it. They believe that pursuing patent issues in court can be a lengthy and very expensive process.
In Indonesia, startup companies and micro, small, and medium enterprises (MSMEs) in the technology innovation industry can be highly susceptible to attacks by trolls. They often have limited resources and lack the expertise needed to handle issues related to intellectual property law.
Worry not, if you do receive troll threats, you can fight for your innovation, as in the case of Cloudflare vs Sable.
Patent Trolls Case Cloudflare vs. Sable
In March 2021, Sable IP and Sable Networks took Cloudflare to federal court. Sable argued Cloudflare was violating about 100 claims from four different patents with several of its products and features.
Sable’s patents focused on old hardware-based router technology that grouped packets into flows. For sure, this approach isn’t used in modern cloud services like Cloudflare. Cloudflare usually manages traffic packet-by-packet.
However, Sable still argued that their broad patents still applied to nearly all router functions, including Couldflare’s advanced technology.
As patent trolls, Cloudflare believes that Sable IP and Sable Networks have never created or sold any product. They have no employees for developing technology. Refusing to give in to demands for payment, Cloudflare takes a stand and fights back on Sable.
Cloudflare launched a project named Project Jengo. Cloudflare asked the public to help find prior art for all of Sable’s active patents. Cloudflare rewarded $100,000 to anyone who provided solid evidence.
On the other hand, Cloudflare also submitted petitions for inter partes review to the U.S. Patent and Trademark Office (USPTO) to try to cancel Sable’s patents. Inter partes review is an administrative process where patent judges at the USPTO review documents to decide if a patent should have been granted or not in the first place.
Cloudflare thinks that these strategies can put pressure on the trolls. For all the hard work from the legal team, people help from Project Jengo, and internal members, Cloudflare successfully reduced Sable’s case from 100 claims across four patents to just one claim on a single parent.
How to Protect Our Brand From Patent Trolls
So, what can we learn from Cloudflare’s battle against Sable? Collaboration is becoming the essential weapon to win the battle. Cloudflare identifies the main problem properly with the legal team and maintains collaboration with extraordinary people through their project.
It indicates that Cloudflare’s approach to defending itself against patent monetizers like Sable was not just about fighting a legal battle. It was about building a collaborative defense strategy. Here are some strategic takeaways to protect your brand from patent monetizers:
1. Stay Proactive in Monitoring
You have to regularly monitor the patent landscape in your related industry to stay ahead of potential threats. Establish a response plan for potential attacks, including a clear strategy for negotiation or litigation.
2. Collaborate with Legal Team
Cloudflare worked closely with a skilled legal team to carefully analyze and understand the key issues in Sable’s claims. So, you have to collaborate with experienced intellectual property firms who specialize in patent laws.
A strong legal team will help you assess your opponent’s (patent monetizers) weaknesses and develop a comprehensive defense strategy.
3. Build a Defensive Patent Portfolio
You can also build a portfolio of your patents that can be used defensively. Having a collection of relevant patents can help you in countering or negotiating the settlements. Maybe you can be inspired by Cloudflare by building a network of allies to find strong evidence to support legal fights.
But for all the strategies above, you have to secure your innovation patents first. Don’t be frustrated, you can collaborate with Am Badar & Am Badar.
Am Badar & Am Badar are professional intellectual property firms that can handle a variety of Patent Services, including patent search, patent dispute, patent annuity, or even building strategies to defend against patent trolls.
Reach us through the contact, visit our services to get know more about IP services, and click our insights page. You can find the newest information related to intellectual property laws for your industry.
