Patent trolls force small companies to either settle or spend millions trying to win in court, discouraging innovation

[Nick Skillicorn, ideatovalue.com chief editor and founder, 8-31-16, Inc., “How the Current Patent System Actually Hurts Inventorsm,” , accessed: 7-11-24, ES]

If you want to prove that the patent was not valid, then the only way to prove that the lawsuit should not have happened in the first place is to have the legal system decide, analyse all the patents and claims, and determine once and for all whether the patent is valid.

This process can take 3+ years, and cost over $3 million.

This is much too expensive for most small companies to pay, so instead they are forced to pay the settlement claim to the patent troll.

Austin Meyer goes into more detail on how the legal procedures work in this follow-up video (about a company which claimed to have invented the iPhone, in 2010, and it's not Apple), also worth a watch:

Usually, the settlement also forces the small company to sign a "Non Disclosure Agreement" (NDA), to prevent them telling anyone they were sued in the first place. This is why you probably have never heard of patent trolls.

The companies have a single business model: produce nothing, and sue other companies which are actually producing useful, valuable new products and technology. This is the opposite of innovation, which is all about adding value.

It discourages companies from trying to develop new technology, and actually punishes those entrepreneurs who do. Just the fear of being sued is enough to stop such progress.

And a large number of these lawsuits come from "companies" which are actually empty offices in a town called Marshall, Texas. I have to say, to me that makes this the Least innovative place in the world.