Post 5: SHIELD act against Non-Practicing Entities

The main problem for a lot of the big companies with core operating business based on Intellectual Property is the damage from non-practicing entities. These so-called companies, in jargon Trolls, incorporate their businesses just to file or acquire a patent and wait for the other company with deep pockets to start producing software against troll's patented technology.

Then main objective of non-practicing agencies is to do research on the companies that are violating their registered patent and file a law-suit against them. This is very unethical practice of  doing business, the main goal of which is to make money on a law-suit.  Non-practicing agencies are disrespected in the business world, and many patent brokers, law firms, and other businesses don't do any business with them. Besides that, laws are changing in favor of operating businesses and against trolls.

For instance,  the article at Tech Crunch: The Death of the Non-Practicing Entities discusses a new act SHIeld that protects high tech companies against non-practicing agencies by making them pay all the litigation costs of defendants. This acts also protects start up companies by easing their burden of investing into the legal departments to fight against well established tech companies with solid budget in the patent law-suits. Instead start ups can focus on development of their technology and business which stimulates innovation and technological progress.