“In a new paper, “Patent Licensing, Technology Transfer, & Innovation,” that Lemley co-authored with Robin Feldman of University of California Hastings, the key finding was that patents are only useful when they deliver innovation to consumers that they would not otherwise get. This happens in the pharmaceutical industry when a company is allowed to exclude competitors for a fixed period of time to recoup its sizable investment in research. Value is also created when a university transfers know-how along with a patent and when an infringer copies from the patent owner.”
“Lemley and Feldman found that that patent litigation and licensing demands for existing patents only happen after the defendant has developed and implemented the technology, particularly when patent trolls are involved. And they cite several studies which show that patent trolls now account for the majority of patent lawsuits that are filed.”
The full column can be found here.