New Bubble? Investing In Lawsuits
from the how-very-american dept
Of course, in many ways, many of the patent lawsuits by "non-practicing entities" (or as many prefer, "patent trolls") are exactly this as well. NTP, the company that stung RIM for $612.6 million over patents that the US PTO said were invalid was really just a bunch of investors, who all got to share in the "winnings," some of which they're now investing in more patent lawsuits. While the theory may be good, the problem is that it encourages bad lawsuits. One would hope that such investments wouldn't encourage such bad lawsuits because investors would rather invest in lawsuits that have a strong foundation, but that isn't always what we see. Since so much of these sorts of lawsuits (and certainly various class action lawsuits) feel like something of a crap shoot, what you end up getting is a case where these "investors" are better off "diversifying" across a bunch of questionable lawsuits, in the hopes that a few hit homeruns and pay off big time.