09.21.11

Another Bessen Study Estimates Cost of Patent Trolls at Around $500,000,000,000

Posted in America, Patents at 12:51 pm by Dr. Roy Schestowitz

Money

Summary: More scholarly ammunition against the practice of patent trolling (or NPEs)

Half a trillion dollars is a lot of money. The co-founder of Microsoft tries to hijack a system that is worth half a trillion dollars per year while also promoting patents for fame and profit. But that is a subject for another day.

Earlier this year we mentioned a widely-cited Bessen study about the harms of software patents. His next paper seems to be about the harms of patent trolls. James Bessen wrote this next paper with Michael Meurer and Jennifer Laurissa Ford. Fortunately, it is accessible for reading online. The abstract says:

In the past, non-practicing entities (NPEs) — firms that license patents without producing goods — have facilitated technology markets and increased rents for small inventors. Is this also true for today’s NPEs? Or are they “patent trolls” who opportunistically litigate over software patents with unpredictable boundaries? Using stock market event studies around patent lawsuit filings, we find that NPE lawsuits are associated with half a trillion dollars of lost wealth to defendants from 1990 through 2010, mostly from technology companies. Moreover, very little of this loss represents a transfer to small inventors. Instead, it implies reduced innovation incentives.

Timothy B. Lee provides an alternate summary and so does this person, who writes:

We all know patent trolls waste everyone’s time and money, leech off the productive and innovative, and are generally annoying. If you’re into the independent software development scene at all, you probably support a few developers that have been trolled. It’s expensive and wasteful and we all know it — well, we all have anecdotal evidence to support that claim anyway, but now, thanks to researchers at Boston University, we now have a study we can point to and that study shows innovators have lost $500 billon to patent trolls since 1990.

Mike Masnick took on the issue and Glyn Moody was another taker, so Techrights is unlikely to have much to add. Moody writes:

Aside from the patent trolls themselves, few have a good word for them, since it’s pretty obvious to everyone that they suck money out of companies that make stuff, and thus act as a brake on real innovation. But those feelings have been largely unquantified. Now, thanks to recent work of the authors of the seminal book “Patent Failure”, James Bessen and Michael Meurer, along with a third author, Jennifer Laurissa Ford, we have perhaps the first rigorous estimate of the damage they cause. It’s even worse than we thought…

But think about this: “Non-troll patent owners cost us even more?”

That the claim from Matt Asay, who worked for Novell and Canonical. Novell makes its customers pay Microsoft for patents and Canonical nearly did the same.

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

This post is also available in Gemini over at:

gemini://gemini.techrights.org/2011/09/21/npe-paper/

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. Links 2/8/2021: Linux 5.14 RC4 and 20% Growth in Steam

    Links for the day



  2. IRC Proceedings: Sunday, August 01, 2021

    IRC logs for Sunday, August 01, 2021



  3. Links 1/8/2021: LibreOffice 7.2 RC2 and Lakka 3.3

    Links for the day



  4. Was Microsoft Ever First in the Market?

    Confronting the false belief that Microsoft ever innovates anything of significance or is "first" in some market/s



  5. Links 1/8/2021: 4MLinux 37.0, IBM Fluff, and USMCA Update

    Links for the day



  6. Microsoft Knows That When Shareholders Realise Azure Has Failed the Whole Boat Will Sink

    The paranoia at Microsoft is well justified; they've been lying to shareholders to inflate share prices and they don't really deliver the goods, just false hopes and unfulfilled promises



  7. [Meme] Nobody and Nothing Harms Europe's Reputation Like the EPO Does

    Europe’s second-largest institution, the EPO, has caused severe harm/damage to Europe’s economy and reputation; its attacks on the courts and on justice itself (even on constitutions in the case of UPC — another attempt to override the law and introduce European software patents) won’t be easily forgotten; SUEPO has meanwhile (on Saturday, link at the bottom in German) reminded people that Benoît Battistelli and António Campinos have driven away the EPO’s most valuable workers or moral compass



  8. IRC Proceedings: Saturday, July 31, 2021

    IRC logs for Saturday, July 31, 2021



  9. [Meme] When it Comes to Server Share, Microsoft Azure is Minuscule (But Faking It)

    Don't believe the lies told by Microsoft's charlatans and frauds; Azure has been a total failure and that's why there are layoffs as well



  10. [Meme] Mozilla Has Turned From Technical to Marketing

    Way back, long before Mozilla and Firefox got hijacked by politics (turning Mozilla into a VPN reseller that lies about its stance on privacy), geeks were driving the company, not corporate lawyers and spying/marketing people



  11. Over 1,500 (Known/Unorphaned) Gemini Capsules and Over 160,000 Page Requests in gemini.techrights.org During July

    Techrights is expanding at gemini:// (Gemini space) and over 1,500 capsules are reported to have been found (less than 4 months ago it was about 1,000)



  12. Links 31/7/2021: Kernel Additions and Linux Mint 20.3 Release Date

    Links for the day



  13. Microsoft Azure Stagnating

    Reprinted with permission from Mitchel Lewis, former Microsoft employee



  14. For 17 Days (and Counting) António Campinos Has Failed to Respond to Call for Compliance With the Law

    Team Campinos has been so arrogant and so evasive that there’s no indication (yet) that it will follow court orders (Willy ‘Guillaume’ Minnoye openly bragged about ignoring court orders and he's still cheering for the EPO's abuses); therefore, staff of the EPO takes collective action



  15. Raw: Elodie Bergot Breaking the Law by Threatening Against the Exercise of Fundamental Rights

    Over the years we saw a number of rude letters from Elodie Bergot, the grossly under-qualified spouse of a friend of Vichyite Benoît Battistelli; most of these we never published (we already have these and can always publish if the need arises), but those paranoid and insecure “Mafia”-like ‘cabal’ need to be exposed for the mobsters they are; for nearly a decade they’ve illegally bullied EPO staff in clear violation of the law (and for over 3 years António Campinos has kept those bullies on board); why does Europe do nothing and why is it never holding high-profile abusers accountable (only low-level facilitators)? Is it because the EU too is being infiltrated by them?



  16. Linspire Should Be Avoided in 2021 Just Like It Was Avoided 14 Years Ago

    The brand "Linspire" was brought back, but the agenda seems to be more or less the same, namely pushing proprietary software and serving Microsoft's commercial agenda (in 'Linux' clothing)



  17. The Death of Freenode Would Be Freenode's Own Fault

    Freenode is going dark and now it’s asking people to create accounts at IRC.com (just to get back into the network that they may have already occupied for decades) as if Freenode owns “IRC” as a whole



  18. Links 31/7/2021: KDE Progress and Activision Catastrophe

    Links for the day



  19. IRC Proceedings: Friday, July 30, 2021

    IRC logs for Friday, July 30, 2021



  20. The Smartest Meter of All

    Yesterday a lady came over to take our power readings (electric/gas meter); secure these people's jobs as they help protect people's privacy (dignity) at home



  21. [Meme] A Web of False Dichotomies

    A reminder that Techrights is fully available (all blog posts and wiki pages) in gemini://



  22. Freenode Shrinks by Another Quarter and Gemini Continues to Grow (For Techrights at Least)

    Freenode continues to perish faster than we've imagined; it's a good thing that we've had contingencies set up; regarding the monopolised and increasingly centralised Web, we're still making baby steps towards weaning ourselves off it



  23. Links 31/7/2021: Wine 6.14 and Chrome 93 Beta

    Links for the day



  24. European Media Does Not Care About Europe's Second-Largest Institution Crushing Basic Laws and Fundamental Rights

    New video about the latest publication from SUEPO (the EPO’s staff union); it was published yesterday, seeing that the “Mafia” (what EPO staff actually calls the management!) hasn’t done anything to comply with a wide-ranging set of court rulings from ILO-AT; why has the media said nothing about this and what does that say about today’s media? The material is all in the public domain, in widely understood languages, and SUEPO spoke about it more than 3 weeks ago.



  25. Links 30/7/2021: Distro Comparisons and Tootle Introduced

    Links for the day



  26. [Meme] Enforcing ILO-AT Rulings...

    We’re still waiting for a statement — any statement (direct or indirect) — from EPO management, seeing that almost a month has passed



  27. 'Open Source' as a Failed Initiative

    A closer look at the dire state of the Open Source Initiative, or OSI, which no longer protects Open Source (let alone software freedom) but instead helps openwashing, Microsoft entrapment, and a coup against the FSF



  28. [Meme] Rowan and António Sittin' on a Tree...

    How much longer can Team Campinos keep issuing tons of noisy and self-congratulatory puff pieces to (perhaps) distract from the elephant in the 10th floor of the Isar building (EPO HQ)? Staff won't wait for eternity.



  29. IRC Proceedings: Thursday, July 29, 2021

    IRC logs for Thursday, July 29, 2021



  30. Half the People in This Letter Are IBM Employees

    IBM seems to be continuing its war on the FSF because IBM wants to own everything (CentOS being ‘canned’ was just part of the plan)


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts