Patent Trolls, The Causes, Impact, And China's Response,

The trend of patent troll and its management style which only aims to pursue excessive damages or royalties has caused great concerns for some enterprises. This so called patent troll is the name of those non-practicing patentees who gain profits only from patent licensing or lawsuits. Generally speaking, if the infringement is found and the plaintiff requests, the US court will issue permanent injunctive based on the precedents. However, the Supreme Court overruled the traditional automatic injunction rule in eBay v. MercExchange and establishes a de facto compulsory licensing scheme against patent trolls. This decision is controversially discussed. At the same time, the emerging phenomenon of patent troll also has influenced the patent reform act in the US.This thesis introduces the definition, nature, and characters of patent troll first, and then give an. overall view to the causes and influences of patent troll. Although, the typical patent troll has not existed in China yet, the patent infringement lawsuits lunched by "questionable patent" can be analogized to patent troll in the author's view. In addition, with the development in the overseas markets, the domestic companies may face with more patent troll treats. In this circumstance, this paper analyzes how to deal with patent troll in China based on the current compulsory licensing and the abuse of patent, and proposed to take some measures to fight against patent troll from the mechanism of balance of interests in China. What's more, if the domestic companies have a better knowledge of the characteristics and bargaining weapons of the patent troll, the domestic companies can deal with patent troll treat by increasing their monitoring efforts, taking measures, and being a member of some IP league in a proper time.