In a 300-page report issued on March 7, the FTC has undertaken the task of trying to evaluate the effects of patent-enforcement remedies on the IP marketplace, especially the effects of so-called "patent trolls" - companies whose business models center on purchasing patents and then enforcing them against infringers. The report (a copy of which is available here) is based on information gathered during a series of hearings that commenced in December 2008, and it includes a number of recommendations intended to align patent-protection mechanisms with the public's interest in innovation and competition. Those recommendations include:

· Standardizing the definitions of terms commonly used in patent applications, in order to avoid ambiguity at the enforcement stage
· Passage of legislation requiring publication of patent applications 18 months after filing, in order to facilitate public notice of the patent claims
· Urging courts not to presume irreparable harm based on a finding of infringement or on the patentee's use of the patent

"There is a place in this world for IP trolls, or 'patent assertion entities,' as the FTC names them" says Christopher Barnett, an attorney with Scott & Scott, LLP. "In some cases, they serve as a source of compensation for inventors whose products otherwise might not make it to market due to lack of capital. The trick is to strike a balance between that value and the fact that, when unchecked, trolls can stifle innovation by increasing the risks for other players without bringing anything new to the table." For more information, please contact Mr. Barnett at 800-596-6176 or cbarnett@scottandscottllp.com.