NRF takes ‘patent troll’ fight to Congress

They are not mythological monsters, but a real phenomenon retailers say is limiting their ability to take advantage of emerging technologies.



The National Retail Federation (NRF) is officially calling on Congress to pass patent reform legislation that would put an end to “shakedown settlements” forced on retailers by “patent trolls.” Patent trolls are companies that purchase often-obscure patents for technology they did not invent, then demand licensing fees from retailers and other businesses that may not realize the technology is patented.



According to the NRF, trolls usually lose in court, but court costs are so high that they often end up effectively blackmailing a retailer into settlement.



“Retailers who once engaged with small technology providers no longer invest in their innovation out of fear of increased litigation brought by patent trolls,” said NRF senior VP David French. “Patent trolls have created a chilling effect on retailers’ incorporation of technology in their stores and online.”



French’s comments came in a statement submitted to the Senate Small Business Committee, which is holding a hearing Thursday, Feb. 25 to examine the impact of the patent trolls on small businesses.



“Effective patent litigation reform legislation is about stopping the patent trolls’ lucrative business model of asserting meritless patents and getting shakedown settlements,” French said. “Only Congress can pass reform needed to put them out of business for good.”