Comment by patentatt
6 years ago
Many of the troll cases actually do trace back to a small time inventor, very often a failed small startup. They then sell their patents to various intermediaries which winds up in the hands of a ‘troll.’ So the original inventor does get paid, even if it’s an NPE doing the actual litigation against the big companies. The reason these trolls are so abhorrent is that they seek to maximize their economic value in the patent by trying to extend it as far as they can go, which gives them a bad reputation, but they play an important role in the system which can reward small time inventors. Big companies don’t really buy patents from small inventors any more, so the only route to monetization for an invention is through NPEs.
I would also not be surprised if they paid the inventors as little as they can get away with and ended up with more “income” than they pass along.
Yes, that is generally how investments work. Companies determined to spend more money than they are able to make off of patents might have exist, but not for long.