TIGA, the trade association for developers and digital publishers, said today that the announcement on September 27th 2013 by the US Federal Trade Commission (FTC) to investigate alleged abuses of the USA patent system was good news for the high technology sector, including the games industry.
The FTC has started a public comment period to gather information about how so-called patent assertion entities, or ‘patent trolls’, operate. Such public comment periods are typically used as the foundation for subsequent policy or enforcement actions. An investigation into patent trolls will proceed, depending on the decision of the Office of Management and Budget.
Many patent trolls are shell companies that purchase patents from entities or individuals that are not exploiting them commercially, or indeed where companies are closing down or have ceased to trade, with the sole intention of extracting revenue from entities that operate in the area the patent protects. Patent trolls extract revenue either by pursuing alleged infringers or by seeking to negotiate licence agreements with those parties seeking to use the patented invention.
Dr Richard Wilson, TIGA CEO, said:
“Patent trolls can inflict uncertainty, waste time and impose significant costs on high technology businesses, including games developers. Typically, the troll’s approach is to blanket mailshot an industry likely to operate in the field of the patented product or invention. The troll will with confidence allege infringement on the part of the recipient, generally without detail. The troll may also demand that the recipient must enter into a license agreement that of course attracts a considerable fee. The recipient is left in a nightmare situation: whether to expend valuable time and resources, both internally and possibly engaging external experts to determine whether there is any truth to the allegation, or risk ignoring the troll’s demands and face legal action.
“The FTC’s decision to initiate a public comment period to collect information on how patent assertion entities operate will be greeted warmly by many high technology businesses.”
For information about the FTC’s investigation, see: http://ftc.gov/opa/2013/09/paestudy.shtm
About TIGA:
Notes to editors:
About TIGA
TIGA is the trade association representing the video games industry. The majority of our members are either independent games developers or in-house publisher owned developers. We also have games publishers, outsourcing companies, technology businesses and universities amongst our membership. Since 2010, TIGA has won 16 business awards.
TIGA focuses on three sets of activities: political representation, profile raising and developing services that enhance the competitiveness of our members. This means that TIGA members are effectively represented in the corridors of power, their voice is heard in the media and they receive benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities.
For further information, please contact:
Dr Richard Wilson, TIGA CEO on: 07875 939 643, or email: richard.wilson@tiga.org
Drew Field, TIGA Communications Director on: 07720 643 344, or email: drew.field@tiga.org