Reader BakaYaro points us to this article about OPTi, the company that recently won a $21.7 million patent ruling against Apple, where the company’s CEO insists it’s not a patent troll because it’s only suing over patents that it got itself. It seems that Bernie Marren is trying to redefine what a “patent troll” is to mean just someone who buys patents and sues. But the real story shows that OPTi is yet another example of patents harming, not helping, innovation. The company used to produce products, but other companies eventually caught up, and OPTi couldn’t compete. Now, in a true capitalistic society, the companies that can’t compete, go out of business. And that’s a good thing. Failure is important for free markets to work. But, thanks to the very un-capitalistic concept of government granted monopolies, known as patents, tech companies never need to fail and go out of business. They can just sue over patent infringement. So, OPTi went from a 235-person company producing products and adding value to the market, to a 3-person company that just sues and extracts money from the companies who actually provide value on the market. So OPTi went from providing value to sucking value out of the market. It might not be a troll, but it’s difficult to see how it’s good for the economy or for innovation.
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