Why Companies Resolve Cases Out of Court Against Patent Trolls

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Why Exactly Companies Settle Out of Court
Against Patent Trolls?
2
Why Exactly Companies Settle Out of Court
Against Patent Trolls?

• This world is full of inventions! Every day new
  inventions are made throughout the world in each
  and every field. This is a very bright thing for
  the mankind as new and advanced methods actually
  make life easier for the people or give them more
  suitable options. The only problem with most of
  the new inventions is that somehow they are
  related to an already discovered technology,
  product, service, etc.
• The simple reason being that there are a lot of
  patent troll companies out there who are looking
  to sue other companies for infringement. These
  bad patents target only those companies which are
  not having their own patent or do not have anyone
  to protect them. These companies do not have any
  choice but to surrender against these bad patents
  due to the following reasons!

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Top Reasons Companies Settle Out of Court Against
Patent Trolls

• Company Fail to File a Patent
• They Cannot Bear Court Expense
• They Are Afraid of Negative Publicity
• They Do Not Have Patent Insurance

4
 They Fail to File a Patent

• The companies that are being targeted by bad
  patents are the ones who fail to file a patent on
  time or do not think of it as a necessity. The
  products they are manufacturing, the technology
  they are using or the service they are providing
  is not owned by them legally. So, it exposes them
  for infringement.

5
They Cannot Bear Court Expense

• There are companies who do own a patent for the
  kind of service they are providing but do not
  have enough money to bear the expense of hiring
  an attorney or facing other court proceedings
  expense. This is the reason they like to settle
  out of court with whatever the patent troll
  companies ask because the bad patents ask for an
  amount which is less than the court expenses.

6
They Are Afraid of Negative Publicity

• For a company, the image is everything and no
  company wants to take any chance with their
  image. They do not want to be covered in
  newspapers and talked about in any business or
  social surroundings of their infringement. This
  is the reason they avoid these legal patent
  battles.

7
They Do Not Have Patent Insurance

• This is the biggest mistake which the companies
  make by not having a patent insurance. Most of
  the companies think that the cost of patent
  insurance is very huge and it is wastage of
  money. However, they do not realize that due to
  patent insurance, the patent troll companies
  never ever think of infringing a company. The
  reason being that companies having patent
  insurance are not going to settle out of court
  and the bad patents do not want to fight a legal
  battle either!

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