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-- American -- but our our -- abusing this legal system we've got a group of fifty American companies.
Sending a letter to congress yesterday pleading for patent reform this is the FTC already expected to begin a sweeping investigation of the patent system.
And here with his take on his big -- -- they -- managing director from Menlo ventures thanks for being with us.
So I thought we'd fix this problem I mean in 2011 -- Obama signed some kind of patent reform act.
Supposed to cut down on.
On superfluous lawsuits but it hasn't.
What went wrong.
What -- wrong is that we still have people are showing up on your bill saying that making outrageous claims I'll give you an example.
We have -- has been in the business -- forty years and now we have company's.
Patent litigation coming coming in and saying.
We want -- have we wanted to shake down on you become a challenge we gonna say -- while hitting something.
And then on the basis of that make an outrageous claim and then try to get asked to pay them protection money to go away.
Now I remember there was also a reform some years ago whether it -- because there -- -- submarine patents are believed to -- limbless and the late -- was a very famous for.
Amending a patent again and again going on for years we come back -- -- at the supermarket scanner that's what I meant when really did that -- thirty years before twenty years before.
So we did that -- -- seventeen years I believe from the moment you apply.
But what else needs to be done to fix it.
Let me first need to have real issue is that companies are suing under different names we don't know who is suing -- walked.
If companies are making claims that really sort of it is -- -- -- to lobbyists a -- the all claims that I have really been discount before.
As we have this really ridiculous situation of the litigation system -- the legal system makes you go to -- longest Kelly process setting -- a lot of cost.
So in essence even when you think how to -- no valid claim they'll cost you a million dollars to get too cold and probably two million dollars off the -- the challenge it.
And the question that you know legitimate companies have us -- mean could this -- and also cost and headache are do we just settle for something less.
And so what how to litigation has become has just become a protection racket a shakedown for people to common -- it.
And and real legitimate companies are facing there -- room.
This child had -- fighting it looked.
I'm -- there's only in the past decade or so that we see more of these blatant.
Patent trolls they go by old underutilized dusty old -- they've got them off and they gladly start holding up industry for fees.
But isn't it partly your fault you know companies pay off these patent trolls these lawyers rather than fight them they don't take it all the way the court they're too afraid of the treble damages that your.
You're subjected to if you lose a patent award -- -- these pay these guys they keep going around asking for more handouts.
Yeah OK so maybe there's some -- outside for perhaps settling but what do you do do you actually spend your days dealing with losses that you wanted to create innovation you quite that obvious to.
You crush them while it's easy to save but you know and it takes you also deposition.
And millions of dollars and that's time taken -- from innovation.
It's very hard to make that and these guys -- past sites right these guys are parasites are living in the got up our capitalistic system and putting a twelve on innovation.
We need help we need the gum -- the state.
Products haven't ruled in our society -- you know.
I -- to the ground about Thomas Edison these guys use patterns to build stuff I'm OK with people that.
Who wanna charge brought into the building stuff but not on -- site in Gaza just try to put a -- on innovation and doing a -- -- you have a part of what.
-- is -- of the biggest.
Some of the biggest patent holders themselves started using patents -- ring fence to keep other big rivals out of their business instead of cross license to get and advancing technology and so let's start to beat this thwarted in and distorted.
By the incumbents themselves.
Twenty years ago this has been going on and so the trolls are only doing what you -- started doing long ago thanks for being with us we appreciate -- vacate.
-- -- Thank you for having me Dennis.
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