In the last week, the U.S. Supreme Court issued two important rulings limiting patent rights. The decisions, which were both unanimous, significantly scaled back the ability of patent holders to slow innovation by competitors, tipping scales that many legal scholars believe have become badly imbalanced.
The U.S. Supreme Court Is Reining in Patent Trolls, Which Is a Win for Innovation
Two recent rulings put new limits on patent law.
June 02, 2017
Summary.
The U.S. Supreme Court has issued two important rulings limiting patent rights. The decisions significantly scaled back the ability of patent holders to slow innovation by competitors, tipping scales that many legal scholars believe have become badly imbalanced.The first decision delivered a blow to so-called “patent trolls.” Known more politely as “patent assertion entities,” these are companies who buy up unused and often weak patents and then strategically sue technology companies large and small, claiming ownership of basic components of products that have long been in the market. The second decision limits the rights of patent holders to control their inventions, especially after products are sold to consumers.
For startups and established businesses alike, the Supreme Court’s continued efforts to rein in patent abuses are welcome news. Patents are supposed to maximize innovation by protecting truly novel products and services. But until the U.S. Congress finishes urgent reforms, the current system too often does just the opposite.