How patent trolls affect your real estate business

Patent litigation and trolls? What do they have to do with real estate?

A patent troll is a person or company that attempts to enforce patent rights against accused infringers far beyond the patent’s actual value. Patent trolls often do not manufacture products or supply services based upon the patents in question.

The National Association of Realtors® recently issued a Call-for-Action to urge our U.S. representatives to support H.R. 9, the Innovation Act, to stop patent trolls and protect the real estate industry from frivolous lawsuits.

I think many Realtors® have been asking themselves the same question – “Why is NAR involved in this?”

Realtors® and everyone involved in the real estate industry are targets for patent trolls. That’s because we rely heavily on technology and software products to market properties and manage our businesses. Trolls buy questionable, overly vague patents, often by the hundreds or thousands, and use them to demand companies pay a licensing fee or face litigation. In Pennsylvania alone, 458 patent-related lawsuits have been filed.

Faced with demands for licensing fees or expensive lawsuits, companies often simply settle with the trolls to avoid accruing legal fees. Some estimates suggest that trolls directly cost businesses $29 billion annually, costs that inevitably filter down to consumers who have to pay more for everything from smartphones to a cup of coffee.

That’s why NAR has joined the United for Patent Reform coalition with nearly 200 other diverse businesses – ranging from Berkshire Hathaway Home Services to Macy’s to Adobe Systems to Facebook – to pursue comprehensive solutions to abusive patent litigation. According to the coalition, the number of patent lawsuits tripled from 2010 to 2014.

H.R. 9 is scheduled for House floor consideration later this summer. You can help by clicking on the link and completing the Call-for-Action to urge Congress to pass this common-sense comprehensive patent litigation reform to protect Main Street businesses and Realtors® from patent troll abuse.