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December 10, 2012


Unfortunately, it's not a tax on innovation. Taxes go to governments, which spend the revenue on citizens (with greater or lesser efficiency, sure). In the end, tax money funds things like health and education.

This money, though, simply accumulates in the pockets of bandits. A protection racket would be a much better analogy than a tax. It's a shakedown.

Your post includes some graphics that certainly illustrate how large of a problem “patent trolls” have become. As Chien noted, these lawsuits are increasingly hitting startups, and separate studies have found the average defense for these lawsuits costs $2 million and can take 18 months to win. We certainly agree that some type of reform is necessary, and we would suggest that patent holders be required to develop a patent before being able to sue for its infringement.

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