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Patent Trolls generate revenue through suing or threatening to sue businesses that infringe on patents. Typically, the damages asked for by Patent Trolls are far beyond the market value of the patent in order to scare small businesses in the initial demand letter, when pressing them to pay the fee to license the patent.
The Judiciary Committee in the House of Representatives has raised concerns regarding the effect of Patent Trolls on small business, startups, and non-tech companies given their lack of resources to defend themselves. As reported by the American Intellectual Property Law Association (AIPILA), the average cost of patent litigation is $650,000 regardless of company size. Approximately 55% of patent lawsuits filed by patent trolls are against businesses earning less than $10 million. The Judiciary Committee also reports that 40% of small businesses targeted by Patent Trolls suffer from significant business setbacks requiring changes in strategy, shut-downs, a decrease in valuation or slows in growth. <ref name="patenttrollsbob" />
→Patent Trolls
==Patent Trolls==
{{#section:The Truth Behind Patent Trolls|trolls}}
=Proposed Patent Reform=
