Escaping the Patent Trolls: Impact of Non-Practicing Entity Litigation on Firm Innovation Strategies
Journal
Academy of Management Annual Meeting Proceedings
Journal Volume
2022
Journal Issue
1
ISSN
0065-0668
2151-6561
Date Issued
2022-08
Author(s)
Abstract
Non-practicing entities (NPEs) are firms that build patent portfolios but do not implement the patented technologies in any products, processes, or services (known as patent trolls). NPEs initiate lawsuits primarily not to stop patent infringement, but for the potential monetary profits. We examine how firms shift their innovation strategies in response to heightened NPE litigation risks. We theorize and find that firms targeted by NPEs will subsequently draw more upon their in-house technologies to reduce the legal ground for such lawsuits, whereas firms in related technology areas will shift their innovation activities away from areas of high NPE litigation risks.
Event(s)
82nd Annual Meeting of the Academy of Management
Subjects
Firm innovation
Innovation activity
Innovation strategy
Patent infringements
Patent portfolio
Patent trolls
Patented technology
Product process
Product service
SDGs
Publisher
Academy of Management
Description
82nd Annual Meeting of the Academy of Management 2022: A Hybrid Experience, AOM 2022, Seattle, 5 -9 August 2022
Type
conference paper