Adverse Repercussions
We have identified numerous reasons and the importance for why firms should protect and capture value from their IPs. It is worthy to note, however, that there is a flip side that requires consideration. The section that follows will attempt to objectify the impacts of the activities that some firms engage in; they are (i) Abuse of IPR, (ii) Anticommons of IP,and, (iv) Ethical Grounds.
(i) Abuse of IP & IPR
The infringement of IP from consumers occur all the time. Perhaps the most prevalent example is the prevalence of internet privacy. With the advancement in technology, information can be accessed in new, liberat-ing ways. Articles and reports are no longer paper bound, media enter-tainment exists on the internet
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There may, however, be under-lying reasons for why this is so. The product or service in question may be “protected” from for certain consumers; this may be regional re-strictions to affordability. Apple Inc. revolutionised the music industry when they introduced the iTunes store, reaching out to a massive interna-tional audience with low-cost purchases.
Firms have been known to abuse their IPR. Patent Trolls, or Patent As-sertion Entities (PAEs), refer to the individuals or firms who are posses-sion of patents and seek monetary reimbursement by enforcing IPR against the alleged infringer. They are in the business of stockpiling pa-tents, and are often Non-Practicing Entities (NPE) with regards to the pa-tents they are in possession of. In 2011, more than half of patent cases have been attributed to patent troll-instigated litigation, and have cost US business an estimated US$29 billion (Bessen, 2012).
While PAEs have been known to go for the big players the industry, it is the small venture capital companies who suffer the full brunt of this bul-lying. Any litigation costs or development delay will have a significant