16. Ewing, T. and Feldman, R. (2012), “The giants among us.pdf Flashcards
(10 cards)
What is a “mass aggregator” in the patent world?
A mass aggregator is a company that buys huge numbers of patents—not to make products, but to profit from licensing and lawsuits.
Example: Like someone buying every parking spot in a city just to charge others to park.
What is Intellectual Ventures (IV)?
IV is the largest mass patent aggregator, founded in 2000, holding tens of thousands of patents using secretive shell companies.
Example: Like owning thousands of secret lottery tickets hoping some hit the jackpot.
Why are mass aggregators different from traditional “patent trolls”?
They operate on a much larger scale, use investment funds, and have backing from major companies and universities.
Example: A troll is one person charging a toll on a bridge. A mass aggregator is a company that buys every bridge and collects tolls.
What does “Invention Capitalism” mean?
It’s IV’s model of treating inventions like investments, using capital to buy and monetize patents.
Example: Like a venture fund for buying ideas instead of companies.
Who funds Intellectual Ventures?
Major tech companies (e.g., Microsoft, Google), universities, hedge funds, and foundations.
Example: Even the World Bank and universities like Notre Dame have invested in IV.
What is “privateering” in the context of patents?
When IV sells a patent to a third party who then sues others—allowing IV to profit without suing directly.
Example: Like a pirate hired by a government to attack enemies while the government denies involvement.
What’s the risk of IV’s business model to innovation?
It may act like a “tax on production,” making it expensive to bring products to market, and may slow innovation.
Example: If every phone company has to pay a fee to IV, fewer will try to make new phones.
What are “shell companies,” and how does IV use them?
Shell companies are legal entities created to secretly hold patents, hiding IV’s identity.
Example: Like using different names to buy up every house on a block without anyone noticing.
How can companies “rent” patents from IV?
IV lets investors use specific patents for lawsuits or defense, sometimes with the option to return them.
Example: Like borrowing a legal weapon for a fight, then returning it afterward.
What is the danger of lack of transparency in patent deals?
It hides who really owns what, making it hard to defend or innovate without risk.
Example: You can’t see the minefield, so you don’t know where it’s safe to walk.
