Patent Economics Can be a Wastebasket

PATENT ECONOMICS 40OMPANES $ 80 M OPERATING $8M The inventor/owner would receive $8 million or 20% of the total settlement value. can be a USING THE PATENDED TECHNOLOGY ARE SUED BY NPE IT WILL GIVE THESE NUMBERS WASTEBASKET WHAT IS WASTED? Here's a breakdown of the economics of a typical non-practicing entity (NPE) - commonly referred to as "patent trolls" - patent monetization campaign. FYI, this example is representative; the number of defendants and dollar amounts can vary, but the general scale of the financial impact is fairly consistent from campaign to campaign. The inventor/owner would receive $8 million or 20% of the total settlement value. $72M To monetize these $8 million there should be $72 million spent on the campaign. WHY IS THAT SO? It happens becaise of a certain third party's busines model. This party is called HOW BIG IS IT? Patent law is a huge industry with giant annual money flow. NPE or a PATENT TROLL They don't own patents, but assert them on a contingency basis. $20 BILLION Was spent on patent litigation and patent purchases in the smartphone industry alone in 2011-12 $40M Legal defense cost *according to a Stanford University analysis WHAT IS EFFICIENT? $27M NPE's net earnings $5M $1.8M Payments to Plaintiff's counsel = $1 million $OM Each company saves $200K x 40 = s8M Companies can contribute To buy a patent Resources: http://www.rpxcorp.com http://www.forbes.com This message was brought to you by RPX