The Legal Analysis Of Patent Troll And Its Preventive Measures

Alone with the advent of knowledge-based economy, patent value has become increasingly prominent. Not Only does patent right become important leverage in the business world for enterprises,but also profitable tool for Patent Troll. Notoriously known for its characteristic of engaging in aggressive litigations to collect economic benefits, Patent Troll takes advantage of patent system and gains profit by “having a firm hold over patents to press others”, which leaves the society concerns that the patent system has deviated from its original aim——promote the progress of innovation as well as development of society.Patent Troll originates from America. It holds patents but does not for making profits through making patented products; instead, it asserts patent rights against others to monetize patents. Patent Troll claims patent rights through different activities, which influences enterprises' normal operation, wastes judicial resources and other social resources; its behaviors not only goes against the transformation of patents but also ultimately damages consumer welfare. With the deepening of globalization, Patents Troll influences the international patent market. Not only has Patent Troll constantly attacked Chinese enterprises on oversea market, but also Patent Troll has carried out activities like buying patents on China's domestic market. Patent Troll has more and more effect on China, yet China is lack of preventive measures to tackle its problems, even the newest draft amendment of the Patent Law. Hence, it is necessary to study it and guard it, so that we can assure innovation drives the development of China.This article falls into five parts. The first part of this article lays out the background and purpose of this article, as well as the methods and content of this study. The second part of this article begins with the concept of Patent Troll, analyzes the types and characters of Patent Troll, and then explores the nature of Patent Troll. The third part studies the mechanism of production of Patent Troll and damages caused by it. The forth part takes America as chief source to discuss measures have taken to prevent Patent Troll. In addition, this article also analyzes other countries' responses to Patent Troll, which could shed light to China. The fifth part proposes precautionary measures towards Patent Troll from perspectives of guiding ideology, specific measures and enterprise based on the national situation of China's actual conditions as well as learning lessons outside of China.