Week 12 - Post #4

Last post for the week - overall, I really enjoyed listening to Efrat's lecture on the intersection of business and patent law. She really had some great diagrams and key takeaways that put all we have been learning this semester into play. 

One key takeaway she discussed was the difference between the "Old Patent Marketplace" vs. the "New Patent Marketplace in the 21st Century"

In discussing a marketplace, first we need to understand the following:

• Key Players
• Key forces/drivers
• Relationships between all in the ecosystem

The Old Marketplace (as defined by Efrat):

In the old model, there were really only three key players that existed:

1. IP Creators/Holders - the usual "creative" minds behind patents
2. IP Users - those who wanted to license these ideas for applicable products and further items in the marketplace or for research
3. Enforcement - the US PTO would be in charge of overseeing this one-way relationship between these two

Overall, the communication was a one-way street. Legal enforcement could easily see the channel communications, and notify for any legal infringements that occurred between the licensing agreements of these two entities. This is before the introduction of the patent troll...

The New 21st Century Marketplace (as defined by Efrat):

In the new model, there are now FOUR key players that exist:

1. IP Creators/Holders - the usual "creative" minds behind patents
2. IP Users - those who wanted to license these ideas for applicable products and further items in the marketplace or for research
3. Enforcement - the US PTO would be in charge of overseeing this one-way relationship between these two
4. *Intermediaries - these encompass more than just patent trolls and have introduced a new class of companies involved in the patent practice
1. NPE's
2. Patent funds
3. Market makers
4. Financial services

Now, when we take a look at the practices and what has been happening in the 21st century market, it is extremely hard for ligitation and enforcement to keep track of where the "flow" of patent sales/licensing occur. Because more parties are now involved in this ever-changing marketplace, and some of those parties are not operating for the betterment of the patent system (aka trolls).

This marketplace mimics how the global marketplace is changing and adapting. The entrance of new players, most of whom are threats to the patent world, changes the dynamics of how our system works and creates a NEED to change patent law and the rules that govern this system. Our government needs to ensure that it is responding to these changes quickly!