The Innovation Tax
Across all sectors, patent trolls systematically target businesses because litigation costs create economic leverage. A $3.5 million budget to defend against a patent troll attack can devastate a small company's annual revenue; likewise, major corporations find it cheaper to settle than fight, creating a perverse incentive that rewards legal harassment over fair competition.
say these lawsuits slow down innovation and product development
agree the U.S. must ensure a fair legal playing field so smaller businesses can innovate and compete
are concerned that the number of new jobs at innovative companies would shrink
Source: Fabrizio Ward Survey, 2025
A Broad Economic Impact
Patent troll litigation creates ripple effects throughout the economy affecting businesses of all sizes. When companies across sectors are forced to settle frivolous patent claims or spend millions in legal defense, those costs are ultimately passed on to consumers through higher prices, or result in reduced investment in research and development. Major technology companies like Amazon, Google, and Microsoft face unprecedented patent troll campaigns, while smaller companies face potential bankruptcy. The cumulative effect undermines American competitiveness in global markets where innovation drives economic growth, making every business—from startups to Fortune 500 companies—vulnerable.
