Responsible innovation and patent assertion entities

Abstract

The concept of “responsible innovation” extends the traditional definitions of “innovation” to consider the ethical, social, and environmental context within which the traditional innovation operates. From this definition, one can surmise that the controversial issue of “non-practicing entity” (NPE) behavior is deeply embedded in the ethical and legal context of the innovation process, and critically so in the technology commercialization phase. This article conceptually bifurcates NPE and “patent assertion entity” (PAE) behavior in relation to responsible innovation; reviews the economic impact (litigation costs) of PAEs on the US economy; identifies market-based solutions to mitigate the impact of PAE litigation, that is, new options for review of prior art and insurance coverage against PAE lawsuits; and discusses the public policy benefits accruing to PAEs' embracing responsible innovation behavior, while arguing against a “loser pays” provision in legislation addressing egregious behavior of PAEs being considered in the 113th US Congress.