Research On The Legal Issues Of Non-Practicing Entities

Today is an era of knowledge economy in which the knowledge economy gives full play. The knowledge economy put a large thrust to the overall development of the society. When a large number of patent concentrated in the hands of only a main body, it will inevitably produce the disequilibrium of patent market forces, which is likely to lead to the phenomenon of monopoly. The monopoly will cause a series of patent abuse events. The phenomenon of monopoly destroyed the emergence and development of innovative technologies, which will ultimately affect the healthy and orderly development of market economy. Non-Practicing Entities are the outcome of the rapid development of science and technology and the growing rights consciousness. Under the background of the market economy matures1 perfect and the rule of law in the current society, Non-Practicing Entities’emergence and development have the inevitability.Its influence has two sides:on the one hand, it can clear property rights and incentive patent market, promote the flow of the technological innovation in the market and the activation of the patent technology, which constantly promote economic and social progress; On the other hand, due to the natural aggregation of the Non-Practicing Entities, it leads to the abuse of the patent, which serious do damage to the balance of the patent innovation system and seriously hindered the further improve the social innovation ability. The production background of Non-Practicing Entities determines its first appearance must be in the countries in which the development of intellectual property right is the perfect, as Europe and the United States and so on. But with the development of the European and American countries, they are taking severe measures to regulate the phenomenon actively. In recent years, China’s independent innovation ability has improved continuously, at the same time, china has owned quite a scale innovation achievements and patents.By the end of December 2015, the accumulation of China’s invention patent grant has more than 1.9 million pieces. However, China’s patent technology utilization and conversion rate is still low. Quite a number of patents are in a state of decentralized, idle or dormant. This kind of condition provide a convenience to Non-Practicing Entities in our country buying technology through the low price. If the Non-Practicing Entities buy these patents, our country will face a massive of the infringement lawsuits. On June 4,2013, the Obama administration announced the five administrative measures and seven legislation Suggestions to fight the Non-Practicing Entities, improving the quality of patents and promote the patent innovation. This move put the Non-Practicing Entities onto the stage of history again. This article namely take "Non-Practicing Entities" as the key point, combining with the legislation and judicial practice in some countries, at the same time exploring the relevant legal issues. On the analysis of the specific legislation and practice situation in our country, the author put forward suggestions on the basis of the related system construction.