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Statements

Subject Item
dbr:Patent_privateer
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Patent privateer
rdfs:comment
A patent privateer or intellectual property privateer is a party, typically a patent assertion entity, authorized by another party, often a technology corporation, to use intellectual property to attack other operating companies. Privateering provides a way for companies to assert intellectual property against their competitors with a significantly reduced risk of retaliation and as a means for altering their competitive landscape. The strategy began with a handful of large operating companies. In April 2013, a group of technology companies asked the U.S. Department of Justice and the Federal Trade Commission to investigate the privateering strategy as an impediment to competition.
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A patent privateer or intellectual property privateer is a party, typically a patent assertion entity, authorized by another party, often a technology corporation, to use intellectual property to attack other operating companies. Privateering provides a way for companies to assert intellectual property against their competitors with a significantly reduced risk of retaliation and as a means for altering their competitive landscape. The strategy began with a handful of large operating companies. In April 2013, a group of technology companies asked the U.S. Department of Justice and the Federal Trade Commission to investigate the privateering strategy as an impediment to competition. Intellectual property privateering most commonly occurs as outsourcing of corporate patent portfolios but can also be applied as one of a corporation's competitive tools and may involve high degrees of stealth. The benefit to the privateer arises in the form of direct financial compensation, either licensing royalties, litigation settlements, or damage awards. The benefits to the sponsors can range from financial gain from licensing to an improved competitive landscape that facilitates increased sales revenue. Intellectual property privateering has been formally defined as: the assertion of intellectual property rights by an entity (the privateer), typically in the form of a non-practicing entity (NPE), against a target company for the direct benefit of the privateer and the consequential benefit of a sponsor company, where the consequential benefits are significantly greater than the direct benefits." The strategy, in part, relies upon the lack of transparency of ownership and motivation permitted in the IP system. The strategy relates to indirect IP strategies in that the IPRs asserted are not owned by the sponsor, although they may have originated from the sponsor's R&D.
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dbr:Privateering_(disambiguation)
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