Patent risk profiles of corporations have dramatically shifted given two recent patent litigation dynamics:
- The rise of patent trolls or NPE's (non-practicing entities)
- The decline of patent infringement 'notice' letters replaced by direct filing of patent complaints
The first dynamic is economic and includes a range of strategic and financial investors, including for example the well-known Intellectual Ventures, and others such as Juridica and Altititude Capital. These investors and an increasing number of firms see opportunities in the exclusionary rights provided by patents to obtain high-risk / high-reward economic returns.
The second dynamic is legal - driven by court decisions that incent patent plaintiffs to file first and negotiate second (the reverse of historical tendencies).