Defending Patents From Trolls
At COFFYLAW, we help businesses defend their innovations from legal threats that can distract from growth. For startups searching for a reliable Newark, NJ patent lawyer, it’s essential to understand how to prepare for one of the most frustrating challenges in patent law: frivolous infringement claims by so-called patent trolls. With more than 80 years of combined experience, our team supports clients not only in New York and New Jersey, but across the country. We have seen many new patent holders targeted by these schemes, which is why we want to share more information:
Why Patent Trolls Target Startups
Patent trolls, also known as non-practicing entities (NPEs), are entities that own patents but do not produce products or services. Instead, they generate revenue by asserting patent rights against others, often targeting startups that may not have the resources to fight lengthy legal battles. Because smaller companies are less likely to have dedicated legal departments or extensive budgets, they are seen as vulnerable targets.
Challenging The Validity Of The Claim
One of the most effective strategies against a patent troll is to directly challenge the validity of the asserted patent. This involves conducting a thorough prior art search to uncover existing inventions or publications that predate the troll’s claim. If prior art is found, it can be used to file an Inter Partes Review (IPR) with the United States Patent and Trademark Office. This method often proves to be more efficient and affordable than fighting the case in court. Working with a patent attorney through this process is highly recommended so they can defend your case and help you identify areas that might be costly to you.
Join Defensive Patent Networks
Startups can reduce risk by joining defensive patent alliances such as the LOT Network or Unified Patents. These groups are designed to neutralize the power of patent trolls by creating agreements that prevent members’ patents from being used offensively if sold to NPEs. This kind of collaboration gives small companies access to broader protection at a manageable cost.
Consider Design-Around Tactics
Another way to respond to potential threats is by altering product designs to avoid infringing on a questionable patent. This strategy, known as designing around, helps companies continue innovating without getting trapped in legal disputes. It also gives them the opportunity to build their own intellectual property on safer ground.
Be Proactive With Patent Monitoring
Startups should monitor the patent landscape regularly. This includes performing clearance searches before launching new products and staying informed of new patents in their field. By staying alert, businesses can take early steps to avoid overlapping with existing patents and reduce the likelihood of becoming targets.
Look Into IP Insurance
Patent litigation insurance can offer a critical safety net for small businesses. This type of coverage helps offset legal costs associated with defending against infringement lawsuits. While it won’t prevent trolls from filing claims, it can reduce the financial impact and make it feasible to fight back when needed.
Take Swift Action When Contacted
If a startup receives a demand letter from a patent troll, it’s important to respond promptly and strategically. Sometimes, ignoring these letters can lead to escalated legal action. Engaging a patent attorney early on can help assess the claim’s validity and determine whether to negotiate, challenge the patent, or pursue another course.
At COFFYLAW, we are committed to helping startups and small businesses protect their inventions from opportunistic claims. Whether you’re based in Newark or operating nationwide, we offer legal strategies that minimize risk and defend your rights to innovate. With over 80 years of combined experience, we are here to help you protect what you’ve built. Contact us today for help.