and individuals do that very thing . Once you own a patent you can stop others from infringing on the patent by starting a lawsuit . This is where patent “ trolls ” come in .
A patent troll is a company or person who threatens to sue , or does actually sue , for patent infringement . The troll uses the patent infringement lawsuit as a way to win court judgments for a profit or to limit and stifle competition . A troll usually doesn ’ t produce anything and is usually not marketing a product . A troll may own multiple patents . The troll usually has some claim that the patent is being infringed in some way , often in a questionable fashion . Of all the lawsuits filed in the federal courts per year , many are for patent infringement and many are from patent trolls . One company is particularly bad . From 2010 to 2019 , it filed 460 lawsuits for patent infringement . In 2019 alone , it filed 44 lawsuits .
These cases are on the rise for obvious reasons . Patent troll lawsuits grew 500 % over the last decade . They show no signs of slowing . The types of companies that get sued has narrowed somewhat . In 2020 , roughly 65 % of companies that are sued are in the technology sector .
Patent trolls usually don ’ t file their lawsuits in a convenient court location . Because of the nature of patent lawsuits , some judges have begun to specialize in these cases . Texas and Delaware courts are two examples . In 2022 , there was a 216 % increase in filings in Texas . It has got so bad that companies are trying to influence potential jurors in the community . The best example of this is a skating rink . Samsung was getting sued so often in Texas that it built an outdoor skating rink in one community to gain favor from the residents . While this might not be such a big deal in North Dakota , in the heat of Texas it is quite an undertaking .
Resolving these types of lawsuits can happen in a number of ways . A company may choose to purchase a license for the product from the troll . This is often the least expensive option . Another option is to settle with the troll for the cost it would take to defend against the lawsuit . A third option is to vigorously defend against the troll . This is the most expensive way , however . The troll is counting on not having to go to court and spend the money it will need to spend in a lawsuit . The company , if it is financially secure , may choose to defend itself as a deterrent to other trolls .
No doubt this type of litigation is unsavory . Instead of producing something and marketing it , trolls seek to gain a financial advantage by threating to sue or actually suing . The best way to respond to a troll is to contact a lawyer that has experience in patents and intellectual property . They can
counsel you on the best way to respond , and hopefully resolve the claim for the least amount of money . Our system certainly needs more legislation from congress to discourage trolls from filing these types of lawsuits . Unfortunately , until that happens , trolls are not going away .
There are many interesting scenarios presented in patent infringement cases . The process can be challenging , but also rewarding . Ms . Smith will have the chance to defend her patented widget in federal court . With the right amount of resources and patience , she should recover from her patent infringement case .
Joseph Wetch has been in litigation for more than 20 years . He recently narrowed his practice to intellectual property and business disputes . He practices in front of state and federal courts , including the court of appeals for the 8th and federal circuit . Currently , Wetch is practicing with Fargo Patent & Business Law in Fargo .
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