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Expert Analysis

MPHJ Case Is Good News For Downstream Tech Users

Law360, New York (September 4, 2013, 12:38 PM EDT) -- A favorite strategy of some less scrupulous "patent trolls" is to target downstream users of a technology instead of the manufacturers. Downstream users are more likely to settle, and "trolls" can accept relatively small settlements from such users of a technology — without diluting the value of the patent portfolio. Typically, users far outnumber manufacturers, so these "trolls" could generate significant revenue by a series of small settlements. These assertions are sometimes based on minimal investigations, yet significant revenue may be collected without the value of the patents ever being scrutinized in court....

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