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+ - New study suggests patent trolls really are killing startups-> 1

Submitted by mpicpp
mpicpp (3454017) writes "Heavy patent litigation scared off about $22 billion in VC funding over 5 years.

Patent reform advocates have long argued that "patent trolls"—companies that do nothing but sue over patents—are harmful to innovation, not just a plague on big companies. A new study attempted to find out if there's any real data behind that accusation or if it's just a few sad anecdotes.

Turns out there is a very real, and very negative, correlation between patent troll lawsuits and the venture capital funding that startups rely on. A just-released study [PDF] by Catherine Tucker, a professor of marketing at MIT's Sloan School of Business, finds that over the last five years, VC investment "would have likely been $21.772 billion higher... but for litigation brought by frequent litigators."

The study defines "frequent litigators" as companies that file 20 or more patent lawsuits, which limits the definition to true-blue "patent trolls," or Patent Assertion Entities (PAEs), the term used by the paper. The study covers the period from 1995 to 2012.

Tucker's paper estimates a 95 percent confidence interval for the amount of lost investment to be between $8.1 billion and $41.8 billion. Those numbers are relative to a baseline of just under $131 billion of investment that actually occurred during that five-year period time."

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Comment: Re:Let me get this straight (Score 2, Informative) 387

by polar red (#47209909) Attached to: Geothermal Heat Contributing To West Antarctic Ice Sheet Melting

AGW has a straightforward reasoning behind it : 1/ the greenhouse effect of CO2, which you can test for yourself: see youtube. if you have other results, warn the nobel price committee. 2/amount of CO2 released can be estimated as well, by calculating how much oil, coal has been burned the last centuries. this amount is far larger than any removal of forest cutting has been responsible for, and far greater than volcanoes.

A CONS is an object which cares. -- Bernie Greenberg.

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