FTC won't let NPEs be
Non-practicing entities (NPEs) can deter innovation by raising costs and risks without making a technological contribution, according to a March 7 report by the US Federal Trade Commission (FTC).
In the report, the FTC singled out “patent assertion entities”—a type of NPE that buys and asserts patents—operating in the US information technology industry. The FTC said: “Increasing activity by...[patent assertion entities]...has amplified concerns about the effects of ex post patent transactions on innovation and competition.”
The FTC’s report makes recommendations for improving the US patent system as companies such as Google and Microsoft join forces to take on GeoTag, a company based in Delaware and the holder of a patent that has changed ownership “at least five times”.
GeoTag recently sued more than 300 companies—many of which use Microsoft and Google web-mapping services—for infringing its patent with their online store locators. Microsoft and Google want GeoTag’s patent to be made invalid, according to their March 1 complaint.
