Patent trolls hurt the US economy,

Abusive patent lawsuits are on the rise. Because many companies have to spend a lot of time defending frivolous patent lawsuits, They are forced to delay hiring new workers, raising wages and developing new products. The key problem is the U.S. Patent & Trademark Office (USPTO) issue patents that should have never been issued in the first place. Seeing it makes it very possible for patent trolls assert the low-quality patents in lawsuits. The accuse others of patent infringement all this even though the patents being asserted will continue to go unused. 

Case in point..Newegg went against a company called TQP’, which claimed Newegg infringed on its patent on SSL and RC4 encryption, a common encryption system used by many retailers and websites for years. At issue is U.S. Patent No. 5,412,730, Claims 1, 6, 8, and 9.

TQP asserted that the patent covered any website using Secure Sockets Layer (SSL) with the RC4 encryption cipher. TQP gone against over 100 other companies, and brought in $45 million in settlements before going after Newegg. Newegg’s trial was held in the Eastern District of Texas, which is known for patent troll litigation and juries friendly to patent plaintiffs. Newegg's largest competitor, Amazon, paid $500,000 to TQP. Microsoft paid $1,000,000. In fact by 2014 TQP filed had 53 additional patent lawsuits concerning the patent in this case, all of which quickly settled. 

Newegg decided not to settle. In a jury trial TQP prevailed, and Newegg was ordered to pay $2.3 million. At the time New Egg vowed to fight that result in the appellate courts. It did and it won. TQP was counting on what other companies did have past. Normally companies pay up and go away, but New Egg had a policy of fighting. It has beaten trolls in the past.

Conclusion

The sad truth is patent rolls ultimately do not do anything. They do not build anything, develop new ideas, or create jobs (except for lawyers). They are fake companies that buy up low-quality, unused patents and use them to exploit weaknesses in United States legal system to extort settlements from small innovators and businesses across America. Make no mistake patent trolls or criminal enterprises. The only difference between a patent troll and a street gang member is: The patent trolls wears three-piece suits.