How patent firms affect startups

Patent firms -- companies that acquire patents either to push for licensing deals or to seek payments from alleged infringers -- have a generally negative impact on startups, according to researchers from the New America Foundation. "[T]he benefits do not appear to offset the harms, according to survey responses and [venture capitalist] interviewees whose companies had been sold to and been sued by" patent firms, Santa Clara University law professor Colleen Chien wrote in a summary of the study.

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