Introduction
Patent rights are granted to inventors to protect their creations from unauthorized use. These rights encourage innovation by ensuring inventors receive recognition and economic benefits. However, when used in bad faith or beyond their intended purpose, it results in the abuse of patent rights.
Understanding Abuse of Patent Rights
Abuse occurs when a patent holder misuses their legal monopoly to hinder competition or delay technological progress. It can involve filing frivolous lawsuits, demanding excessive licensing fees, or engaging in patent trolling — where entities obtain patents only to sue others without producing or innovating anything.
Common Forms of Abuse
- Patent Trolling: Non-practicing entities (NPEs) acquire patents not to use them, but to extract settlements from actual innovators.
- Evergreening: Extending patent life by making minor changes to a product and applying for a new patent to delay generic competition.
- Strategic Litigation: Filing multiple lawsuits to create fear, drain resources, or force unfair settlements from competitors.
Impact on Innovation and Economy
Such practices harm competition and discourage genuine innovation. Startups and small businesses often suffer the most, lacking the resources to fight legal battles. Consumers face higher costs and limited access to better technologies.
Legal Framework and Remedies
Countries are strengthening their patent laws to address abuse. Courts can invalidate frivolous patents, impose penalties, or limit enforcement. The TRIPS Agreement also discourages abuse, promoting a balanced patent system globally.
Conclusion
While patent protection is essential, its misuse undermines the very purpose of intellectual property laws. A fair system should protect innovators but also ensure patents are not used as tools for unjust monopoly or market manipulation.
