10biggestpatenttrolltargetsinbusiness

10

WirelesscarrierAT&T(T)wasthetoptargetofso-calledpatenttrollsin2013,havingbeensuedmorethan54timesbythemin2013—morethanonceaweek.Thisyear'slistoftoptenpatenttrolltargetswaspublishedtodayinaFortunemagazinefeaturestoryaboutRPXCorp.(RPXC),whichcompiledthestatistics.

2013 AT&T

AT&T 54

RPXCorp

2014

Thearticle,called"TakingontheTrolls,"states:"AT&Tisnoanomaly.Google(GOOG)washitwith43[such]suitslastyear;Verizon(VZ),42;Apple(AAPL),41;Samsung(SSNLF)andAmazon(AMZN),39each;DellandSony(SNE),34each;Huawei,32;Blackberry(BBRY),31.Everybrandonthisunenviabletop-tenlistwassuedby[apatenttroll]atleastonceevery12days."

TakingontheTrolls AT&T

Google 43 Verizon

42 Apple41 Samsung

Amazon 39 DellSony 34

Huawei32 Blackberry31

12

Patenttroll"isapejorativeterm.Amoreneutralterm,andtheonethatRPX

uses,is"non-practicingentity,"orNPE.AnNPEisacompanythatsellsnoproductsorservicesofitsown.Intheirmostcontroversialform,NPEspurchasepatentsontheopenmarketandthenassertthemagainstoperatingcompanies,likeAT&TandGoogle,seekinglicensingfeesand,often,suingtogetthem.

RPX

NPENPE

NPE

AT&T

RPXiswhat'sknownasadefensivepatentaggregator.Inexchangeforasubscriptionfee—currentlypaidbysome168companies,includingGoogle,Verizon,andSamsung—itattemptstobuyuppotentiallyproblematicpatentsontheopenmarket,beforeNPEscangettheirhandsonthem.

RPX

RPX

NPE

RPX

168

AccordingtoRPX'sstatistics—whichhavebeenrelieduponbyacademicsandgovernmentagencies——NPEsfiled3,608newsuitsin2013,up19%fromthe3,042theyfiledin2012,andtheirsuitsnamed4,843totaldefendants,up13%fromthe4,282suedayearearlier.NPEsuitsaccountedfor67%ofallnewpatentcasesfiledlastyear,and63%ofallnewpatentdefendants,accordingtothefiguresRPXsharedwithFortune.

RPX

2013

NPE

3,608

2012

3,042

19%

4,843

2012

4,282

13%NPE

63%

67%

WhenonetakesintoaccountNPEcasesfiledinpreviousyearsandstillunresolvedasofDecember31,2013,thetopNPEtargetwasGoogle,whichwasfighting72activecasesasofthatdate.ThenextninecompaniesinlineafteritwereAT&T(70),Apple(68),Samsung(63),Sony(58),Amazon(54),Verizon(46),HTC(42),LGElectronics(42),andDell(41).(ThefiguresforGoogleincludesuitsagainstitsMotorolaMobilityunit,whichGoogleannouncedlastmonththatitissellingtoLenovo(LNGVY).)

20131231 NPE

72

AT&T70 68 63 58

54 46 HTC42LGLG

Electronics42 41

MotorolaMobility

Lenovo

NPEshavetheirdefenders,astheFortunestoryexplains:"Thesearguethatgianttechcorporationsroutinelypilferinnovationsdreamedupbyindependentinventors,andthatNPEssimplygivethesepowerlessindividualsthefinancialsupportandlitigationmuscletheyneedtovindicatetheirrights.NPEsthereforeservenotonlysmallinventors,theargumentcontinues,butalsosocietyatlarge,bypreservingtheincentivesystemsthatourFoundingFatherswroteintotheConstitutiontoensurethattheThomasEdisonsoftheworldwouldbemotivatedtoprovidetherestofuswiththemaximumpossiblebenefitfromtheirgenius