Energy Companies Are Fighting
Back Against Patent Trolls

IP News and Information

There are many legitimate companies that aim to acquire as many patents as possible as they work to build a strong IP portfolio that they can monetize and create new revenue streams. This is obviously a very legitimate business practice and when done right it can create millions and even billions of dollars of additional revenue. On the other end of the spectrum are those companies that gather up as many patents as they can simply to file lawsuits against anyone who infringes on that IP. These types of companies have no intention of ever using their IP to create and sell products. Rather, they just sue companies in hopes of receiving large settlement payouts. It’s an unscrupulous practice that has earned companies that do this the unsavory moniker of “patent trolls.”

Still No Big Payouts

Clearly, patent trolls give patent and IP monetization a bad name. Because of companies like this, many patent brokers or patent buyers get a bad reputation, when in actuality they are legitimate businesses. The good news is more of these legitimate companies are starting to fight back against these so-called patent trolls. Several energy companies that are either based in Houston, Texas or have a strong presence in the city have decided to take a head-on approach against an apparent patent troll. The company, known as Data Carriers, has filed 40 patent infringement lawsuits during the first six months of this year against these energy companies. However, instead of receiving the big payouts it expected, the company is getting a lot less money or no money at all.

What You Don’t Know Can Hurt You

That’s because several of the energy companies involved have decided to fight back. In the not too distant past, many companies like Data Carriers were able to strike it rich as the companies they sued settled for big dollars. However, as Data Carriers has discovered, if they aren’t prepared to go to court, then the target companies can fight back and win. For example, in the case of Data Carriers, the energy companies have been very bold in their defense. Several of the claims have been dismissed because the patent holders couldn’t actually prove their patent infringement claims simply because they didn’t have the necessary technical knowledge regarding the sub-surface systems of a gas or oil drilling site.

Energy Companies Can Stand Their Ground

Because companies like Data Carriers have such a limited knowledge of the technical aspects of gas and oil drilling, the energy companies are able to essentially call their bluff. As long as these companies lack the expertise to show how their patents are being infringed then energy companies can continue to fight these frivolous lawsuits and in many cases, continue to win.

IPTrader Will Help You Monetize Your IP

Meanwhile, if you are looking for legitimate ways to monetize your intellectual property or for opportunities to strengthen your IP portfolio then IPTrader can help you do this. Our IP brokering services are designed to help universities, companies and individuals monetize their intellectual property. Please contact us at your earliest convenience and we’ll help you monetize your IP.