Nonpracticing entities (NPEs) have seen their leverage in patent settlements eroding in the past years, with a string of rulings such as Alice and EBay knocking out core tenets of the patent troll business and lowering settlement values. Litigation Attorney David Donoghue notes that, despite these difficulties, the NPE model will likely live on through new avenues of patent licensing and litigation.
“I don’t see the nonpracticing entity model dying,” Mr. Donoghue said. “Even with these new abilities to challenge the patents, the process is complex and expensive, and there will always be some settlement value even if it trends lower.”
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