The article discusses the tactics used by patent trolls, also known as Non-Practicing Entities (NPEs) or Patent Assertion Entities (PAEs), to target vulnerable companies. According to the author, there is a sweet spot in terms of what an ideal litigation or licensing target looks like for NPEs.
Some key points from the article include:
- Vulnerability: Pre-IPO companies, small companies wishing to be privately acquired, and those undergoing due diligence are considered vulnerable targets.
- Negotiating leverage: NPEs aim to maximize the money they get through negotiating leverage rather than focusing on the merits of their invention.
- Patent protection: Companies can join organizations like LOT Network, which offers cross-licensing protection against PAEs/NPEs.
- AI hype train: As the AI industry grows, companies will become more defensive about protecting their IP measures to prevent potential lawsuits and counter-lawsuits.
The article mentions several examples of companies that have been targeted by NPEs, including Oxa (a UK-based AI startup) and Google/Uber/Aurora (who are members of LOT Network).
Some quotes from the article include:
- "When you’re a pre-IPO company, or you’re a small company wishing to be privately acquired, you’re in a vulnerable state." – McBride
- "The NPEs know this, and specifically time their attacks for just such an event." – McBride
Overall, the article highlights the importance of IP protection and due diligence for companies that may be targeted by patent trolls.