FTC extends public comment deadline on PAE study
The US Federal Trade Commission (FTC) has extended the deadline for public comments on its proposed investigation of patent assertion entities (PAEs).
The study was announced in September of this year, and will look at the business practices of about 25 different PAEs to develop an understanding of their impact on innovation and competition.
The deadline has been extended to December 16, 2013. According to a statement, the commission will not consider requests for further extension.
The FDA defines a PAE as a firm with a business model “based primarily on buying patents and then attempting to generate revenue by asserting the IP against persons who are already practicing the patented technologies”.
PAEs, sometimes known as patent trolls, have attracted criticism from figures including US President Barack Obama, who accuse them of launching frivolous lawsuits with the aim of securing licensing fees or settlements.
Last December, the FTC and antitrust division of the US Department of Justice jointly sponsored a workshop to explore the impact of PAE activity on competition, which identified potential harm, though workshop panellists noted a lack of empirical data.
